Oil Prices and Tensions Raise European Inflation
Чтение
The ECB leader thinks businesses might raise prices quickly. This is because of bad memories from inflation in 2022.
People remember high prices from the last time. So, companies and workers may act more quickly now.
Inflation reached 10.6% in 2022 after the war. Now, inflation is much lower, around 1.9 percent.
Central banks usually do not change rates for short energy spikes. They only act if prices keep rising everywhere.
The current oil price rise is smaller than before. The ECB will watch prices and act if needed.
Вопросы
Why does the ECB leader think businesses might raise prices quickly?
Because of bad memories from inflation in 2022.
What was the inflation rate in 2022?
Inflation reached 10.6% in 2022.
What will the ECB do if prices keep rising?
The ECB will watch prices and act if needed.
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