Energy Shock May Intensify Amid Gas Price Risks and Extreme Weather
European Central Bank President Christine Lagarde has warned that the energy shock could intensify in Europe. Speaking to Reuters, she noted that gas prices may rise if there are further supply disruptions or an unusually cold winter against the backdrop of low storage levels.
The ECB chief also addressed the impact of weather conditions and other natural factors on food prices. She stated that extreme weather events, likely intensified by the strengthening El Niño phenomenon and the broader climate and environmental crisis, could lead to food prices rising at a faster pace than forecast.
It's worth noting that Europe is entering winter with its lowest gas reserves in 13 years, as reported by The Guardian on August 29. This could exacerbate the situation if there are supply disruptions or other external factors at play.