ECB Closely Watches Heatwave Impact on European Inflation

The European Central Bank is closely monitoring the impact of the ongoing heatwave on inflation in Europe, according to Marc Schattenberg, Chief Economist at Deutsche Bank Research.

The extreme weather conditions have already caused disruptions in shipping due to record low water levels in Germany's Rhine river, which has reached 6cm at the Kaub chokepoint. This has resulted in more freight being shifted to road and rail.

Schattenberg notes that the ECB is watching the heatwave's effects on energy and consumer goods prices, which could have a significant impact on inflation rates.