ECB's Escrivá Warns Oil Price Shock Is Spreading to Food and Transport Sectors
Updated
Updated · Bloomberg · Jun 23
ECB's Escrivá Warns Oil Price Shock Is Spreading to Food and Transport Sectors
3 articles · Updated · Bloomberg · Jun 23
Summary
Jose Luis Escrivá said in Madrid on Tuesday that higher oil prices are no longer confined to energy and are now feeding into other parts of the economy.
Indirect effects are showing up along production chains, he said, with cost increases passing through into goods and into sectors such as transport and food.
Plastic and energy-intensive inputs are among the channels transmitting the oil shock, underscoring how broader price pressures can build beyond headline energy costs.
The remarks from the ECB Governing Council member point to a wider inflation risk for the euro zone if elevated oil prices keep spreading through business costs.