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ECB policymaker Nagel says energy inflation has not hit wages yet

Nagel warned that gas prices remain vulnerable because storage levels are low, which could force Europe to buy higher winter volumes.

Reported · Written up by our desk · Central Banks

European Central Bank policymaker and Bundesbank President Joachim Nagel said in a speech in Sorrento, Italy that the inflation impact from energy shock has not yet fed into wage growth, according to FXStreet.

He said longer term market and expert inflation expectations remain consistent with the Eurosystem’s 2% target, with upward risks dominating the outlook and uncertainty calling for flexibility rather than inaction.

Nagel highlighted pressure points including low gas storage, which he said leaves gas prices especially vulnerable, and a need for Europe to buy substantially higher volumes during the winter.

After his comments, FXStreet reported no immediate impact on the euro, noting EUR/USD was down 0.3% to around 1.1215 at press time.

Latest closeEUR/USD 1.126 ▼0.6%

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