ECB Warns of Intensified Energy Shock, Higher Gas Prices

European Central Bank (ECB) President Christine Lagarde has warned of an intensified energy shock, which could have a significant impact on other prices and wage levels. She noted that gas prices may rise due to supply disruptions or an unusually cold winter against the backdrop of low storage levels.

The ECB chief also addressed the potential effects of weather conditions and natural factors on food prices. Extreme weather events, likely intensified by El Niño and climate change, could lead to faster-than-forecast price increases for food.