Published on
02/09/2026 - 7:00 GMT+2
Higher energy prices are the main drivers of inflation in the euro area, ECB economists Kristina Barauskaitė Griškevičienė and Claus Brand wrote in a paper on Tuesday.
"This time the energy supply shock dominates, while demand and public policy stimulus have minor roles. These differences are key to explaining why monetary policy responses differ," they wrote.
The current shock, driven in part by the ongoing war in the Middle East and the subsequent closure of the Strait of Hormuz, differs significantly from the 2021-22 episode, the two economists explained.
