ECB Says Energy Shocks Justify June Rate Hike
New European Central Bank research shows that the recent surge in euro zone inflation was driven almost entirely by energy prices. This finding justifies the central bank's recent decision to raise interest rates.
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The European Central Bank justified its June rate hike after new research showed the ongoing conflict in Iran drove the recent inflation spike entirely through energy costs. The modest policy tightening was the first in nearly three years. Continued supply disruptions in the energy sector have kept Natural Gas and petrol prices elevated across the euro zone.
