ECB Alarmed by Surge in Natural Gas Prices, Upside Inflation Risks Grow

The European Central Bank (ECB) is concerned about rising energy prices in Europe, particularly natural gas costs. According to ECB board member Isabel Schnabel, recent energy price developments have been 'quite concerning'.

Oil and gas prices are already above the baseline levels assumed in the ECB's inflation projections, suggesting that high price growth could prove more persistent than feared.

'Inflation risks are clearly tilted to the upside,' said Slovakia's central bank chief Peter Kazimir. He noted that his attention is now focused less on oil and fuel prices but increasingly on gas and electricity prices.