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 polic

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.