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Energy continues to push prices up
🇬🇷 Greece /Energy & Infrastructure

Energy continues to push prices up

From Kathimerini · () Greek

Translated from Greek, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • Energy prices continue to pressure overall price levels, despite falling oil costs.
  • European Central Bank (ECB) officials note that energy costs remain high and will sustain inflationary pressures.
  • The ECB's chief economist Philip Lane and Bundesbank President Joachim Nagel warned that the energy price shock is not over.

Despite a welcome drop in oil prices, energy costs continue to exert upward pressure on inflation, according to officials from the European Central Bank (ECB). While acknowledging the decline in oil, they caution that the broader energy shock persists and will continue to fuel price increases across the economy.

ECB Chief Economist Philip Lane highlighted that oil prices remaining above pre-war levels for potentially several years contribute significantly to inflation. He stated this during the ECB's forum in Sintra, Portugal, emphasizing the sustained cost burden on the economy.

The fact that we have, perhaps for a few years, oil prices above pre-war levels, constitutes an inflation boost that increases costs for the economy.

— Philip LaneThe ECB's chief economist explained the ongoing inflationary impact of sustained high oil prices.

Bundesbank President Joachim Nagel echoed these concerns, recognizing the faster decrease in energy prices but warning that supply constraints and the need to replenish oil reserves will keep prices elevated for some time. "The energy price shock is not over, therefore inflation rates will remain significantly above our target," Nagel stated.

The article also touches upon related economic news, including the reappointment of Giorgos Alexopoulos as president of SEV for Sustainable Development (VIAN), the departure of Sebastian Sanchez from Athenian Brewery after 14 months, Eurobank's initiative to link Greece with India for cross-border payments, and OTE offering a four-day work week option.

The energy price shock is not over, therefore inflation rates will remain significantly above our target.

— Joachim NagelThe Bundesbank President warned that inflationary pressures driven by the energy shock will persist.
DistantNews Editorial

Originally published by Kathimerini in Greek. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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