Inflation is still expected to reach the European Central Bank's (ECB) target of around 2% by 2025. This occurs even as violence in Israel affects commodity prices, as ECB official François Villeroy de Galhau said on Tuesday. fair.
In an interview with radio franceinfo, Villeroy expressed concern about the evolution of oil prices. However, he added that these prices only represent a small part of overall inflation. He also stated that overall inflation is still “clearly” declining overall.
Oil prices were falling this Tuesday. However, in the previous session, they rose more than 4%. Operators are cautious. They are alert to possible interruptions in supply. This is due to military clashes between Israel and the Palestinian Islamic group Hamas.
Some fear the latest war could have the same effect on oil prices as the 1973 Yom Kippur War, when an attack launched against Israel by a coalition of Arab states led by Egypt and Syria led to a major oil crisis. energy in the West.
“I don't think we are in a similar situation today (to the Kippur War), but it is clear that we must remain very vigilant. This increases economic uncertainty,” said Villeroy.
He also said the ECB's current interest rates, set last month at a record 4% after ten successive increases, were at a "good level", adding that now is not the right time for further increases.
Source: Benoit Van Overstraeten | Notícias Agrícolas
