ECB's Lane: Energy Shock Hits Demand, Raising Inflation Risks

ECB official Philip Lane indicated that current company-level and news-based indicators suggest the ongoing energy shock is occurring in a less demand-friendly environment. This situation is likely to impact inflation expectations as rising selling price expectations point to increased input cost pressures. The energy sector is particularly exposed, as higher costs could lead to reduced margins and demand for energy-intensive goods. Traders will be watching upcoming inflation data releases for further insights into how these pressures may influence ECB policy decisions.

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