An ECB policymaker highlights rising energy costs feeding into broader inflation risks amid persistent uncertainty over wages and oil prices.
European Central Bank policymaker José Luis Escrivá stated that surging energy costs are increasingly affecting services and transport sectors. The remarks underscore concerns about inflationary pressures spreading beyond initial shocks, complicating the ECB’s policy outlook.
Escrivá noted significant uncertainty around oil production recovery timelines and wage-related second-round effects. While wage pressures have not yet materialized, the risk of prolonged inflation transmission remains elevated. The baseline scenario for inflation is described as highly uncertain.
The US Dollar showed strength against major currencies, including a notable gain versus the Swiss Franc, reflecting broader market reactions to inflation and monetary policy expectations.