ECB’s Makhlouf: Will pay attention to indirect effects of higher energy prices

WikiBit 2026-05-01 20:27

European Central Bank (ECB) governing council member and Governor of the Central Bank of Ireland, Gabriel Makhlouf, said in his blog ⁠on the Irish central

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ECBs Makhlouf: Will pay attention to indirect effects of higher energy prices

European Central Bank (ECB) governing council member and Governor of the Central Bank of Ireland, Gabriel Makhlouf, said in his blog ⁠on the Irish central banks website on Friday that he will be vigilant to the indirect effects of higher energy prices on production, transportation, and services, Reuters report.

Remarks

I will be paying close attention to indirect effects, that is how higher energy prices are contributing to cost-push inflation in production, transportation, and services.

Potential second-round effects via wages will take longer to show up, given the ⁠staggered nature of wage-setting in Europe. In the meantime, inflation ⁠expectations need to be closely monitored for signs of de-anchoring.

Market reaction

There seems to be no impact of ECB Makhloufs comments on the Euro (EUR). As of writing, EUR/USD trades 0.2% higher to near 1.1755 due to weakness in the US Dollar (USD).

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