Euro Zone Inflation Rises Amid Energy Cost Surge

Finnish central bank chief Olli Rehn has warned that rising energy prices are pushing euro zone inflation closer to the European Central Bank's 'adverse' scenario.

Rising energy costs have driven inflation above 3% in recent months and could approach 4% by year-end, twice the ECB's target.

Rehn said higher long-term borrowing costs could limit the impact of these higher energy costs on the wider economy.

The ECB has warned that inflation risks are tilted to the upside, but Rehn noted that the outlook remains highly uncertain in both directions.