Rehn Warns of Prolonged Conflict, Elevated Inflation in Eurozone

European Central Bank policymaker Olli Rehn warned of an extended conflict in the Middle East that could keep inflation elevated in the Eurozone.

In an interview with the Financial Times, Rehn stated that the bank must prepare for a 'conflict of attrition' in the region.

The conflict has pushed up energy prices due to the war between the U.S. and Israel on one side and Iran and the near closure of the Strait of Hormuz shipping channel.

Rehn emphasized that the ECB must show no complacency in the face of these inflationary pressures.