Eurozone Inflation Soars as Wholesale Gas Prices Bite

The European Central Bank (ECB) has warned that wholesale natural gas prices are passing through to retail and electricity inflation in the Eurozone faster than before.

Natural gas prices have doubled since the conflict in the Middle East began, while oil prices have increased by around 40%.

The ECB's economists noted that the impact of wholesale gas prices on wholesale electricity prices has been dampened by a shift towards renewable energy sources.

According to an ECB survey, changes in wholesale gas prices are expected to be passed on to consumer gas inflation within 1-3 months in more than half of the euro area, and within 4-6 months in around one-tenth of the euro area.