ECB Warns of Potential Rate Hike Due to Secondary Inflation Effects

The European Central Bank (ECB) may raise interest rates again due to concerns about secondary inflation effects. According to Gabriel Makhlouf, an ECB official and governor of the Central Bank of Ireland, high energy prices could start affecting other price categories in the economy.

No secondary effects have been observed so far, but Makhlouf noted that if energy prices persist for a long time and spread to other areas, the ECB will need to take action again to achieve its inflation target.