ECB Warns Second Energy Shock Wave to Keep Inflation Higher for Longer

The European Central Bank (ECB) has revised its view on the energy crisis, stating that a second wave of price increases for oil and gas is underway.

This second wave follows an initial increase in March and April, after which there was a temporary recovery following the signing of a Memorandum of Understanding between the United States and Iran on June 17.

However, geopolitical risks have since risen again, leading the ECB to expect that inflation will remain higher for longer before falling back towards its target from mid-2027 onwards.