Europe's Gas Shock Is Reaching Inflation Faster
European wholesale natural-gas prices are more than 140% above a year ago, and the ECB finds that retail gas-price pass-through has accelerated.
What happened
European wholesale natural-gas prices are more than 140% above a year ago, and the ECB finds that retail gas-price pass-through has accelerated.
Why it matters
More flexible pricing and shorter contracts speed the gas-inflation channel, while renewables have weakened the link from gas to electricity prices.
What to watch
Watch next: euro-area gas HICP in 1-3 months, inflation expectations, and ECB's data-dependent rate path.
Transcript
European wholesale natural-gas prices are more than 140% above a year ago, and the ECB finds that retail gas-price pass-through has accelerated. More flexible pricing and shorter contracts speed the gas-inflation channel, while renewables have weakened the link from gas to electricity prices. Watch next: euro-area gas HICP in 1-3 months, inflation expectations, and ECB's data-dependent rate path. FreshInsight delivers source-grounded finance briefs for market professionals. Sources: Reuters, European Central Bank Not financial advice. For information and education only.
Primary sources
Distribution
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Topics
finance, freshinsight, inflation, commodities, europe, inflation-expectations, european-central-bank, finance-news, ecbs-data-dependent-rate-path, energy-price-pass-through, euro-area-inflation, euro-area-natural-gas, european-natural-gas, gas, hicp-gas-inflation, reaching, renewable-electricity, shock
Disclaimer
Information and education only. Not financial advice.