Rehn Warns Inflation Could Persist Amid Middle East Conflict

European Central Bank policymaker Olli Rehn has warned that inflation in the Eurozone could remain high due to an extended conflict in the Middle East.

In an interview with the Financial Times, Rehn noted that energy prices have been driven up by the war between the U.S. and Israel on one side and Iran on the other, as well as the near closure of the Strait of Hormuz shipping channel.

Rehn emphasized the need for the ECB to prepare for an extended 'conflict of attrition' in the region, saying that the bank must 'show no complacency in the face of these inflationary pressures.'