ECB board member Rehn said the energy-price shock from the Middle East conflict
has not, so far, spread to other parts of the economy. He said energy remains
the primary driver of Eurozone inflation, wage growth is moderate, and no
second‑round price‑wage spiral has emerged — at least not yet. With inflation
stabilizing and August inflation below its preliminary reading, and the region
showing unexpected resilience amid the Iran conflict, the ECB raised last week
borrowing costs for the second time since the Middle East outbreak; people
familiar with the matter say officials expect further rate increases.
