Even if it is sustained, the 30% increase in European natural gas prices over the past week would add only around 0.1%-pts to our euro-zone inflation forecast for the coming year and would not require any change in the ECB’s monetary policy stance. But if risks to LNG exports from the Middle East crystalise, policymakers will err on the side of tighter policy to guard against second round effects.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services