ECB's Rehn Says Middle East Energy Shock Hasn't Hit Wages Yet
Updated
Updated · Bloomberg · Oct 6
ECB's Rehn Says Middle East Energy Shock Hasn't Hit Wages Yet
3 articles · Updated · Bloomberg · Oct 6
Summary
Olli Rehn said the Middle East-driven energy price shock has not so far spread into wages or other prices in the euro area.
Helsinki-based Rehn warned those second-round effects cannot be ruled out, saying they can build gradually and go unnoticed.
The Bank of Finland chief said the longer the Middle East conflict lasts, the greater the risk that higher energy costs feed more broadly into inflation.
With European gas storage worryingly low, will the hidden ripple effects of Middle East energy shocks suddenly devastate household budgets this winter?
Could Europe's idle cash savings become the ultimate shield against a looming, delayed inflation crisis triggered by Middle East conflicts?