World Economy

Energy Shocks Haven't Yet Hit Broader Prices, Wages, ECB Official Says

Energy price volatility from Middle East tensions has not yet cascaded into wage pressures or broader inflation across the eurozone, according to European Central Bank Governing Council member Olli Rehn. However, policymakers monitoring inflation dynamics remain concerned about the risk of secondary effects spreading through the economy. The ECB and other central banks are watching closely for signs that energy-driven inflation could trigger wage demands or broader price spirals in coming months. While some economies show resilience to commodity shocks, the transmission of energy costs to wages and prices remains a key risk.