ECB Governing Council member Moulin said euro-area wages have not yet been
affected, but the oil-price surge is beginning to feed through to other goods
and services. Three-and-a-half months after the Gulf war outbreak, she said, it
is clear that regardless of short-term geopolitical developments the energy
shock will persist; although second-round wage effects have not materialised,
rising oil and gas prices are already pushing up prices of some consumer goods
and services. Moulin gave no policy guidance, saying the ECB takes inflationary
pressures seriously and is determined to return inflation to a 2% medium-term
target; in a highly uncertain environment the bank will monitor indicators
closely but will not commit to a predetermined path.
