ECB's Zigman Says Middle East War Inflation Impact May Take Months to Show
Updated
Updated · Bloomberg · Jul 26
ECB's Zigman Says Middle East War Inflation Impact May Take Months to Show
2 articles · Updated · Bloomberg · Jul 26
Summary
Ante Zigman said renewed fighting in the Middle East has not yet fully appeared in euro zone inflation data and will likely show up only in coming months.
Energy prices are the key transmission channel, he said, with the inflation effect depending on how intense and how long the shock lasts.
Uncertainty remains high for the ECB as policymakers gauge whether the conflict turns into a temporary price spike or a more persistent inflation risk.