Rehn Sees No Second-Round Inflation Effects From War Shock

European Central Bank (ECB) Governing Council member Olli Rehn says that so far, there have been no second-round inflation effects from the conflict in the Middle East. The energy-price shock has not yet fed through to other parts of the economy.

According to Rehn, 'the driver is obviously energy prices' for euro area inflation. He added that wage growth is moderate and 'second-round effects of any kind of price-wage spiral have been absent, or absent so far.'