Euro Zone Firms Struggle to Raise Prices Amid Iran War
A Reuters analysis reveals that only a third of large euro zone companies are raising prices in response to the Iran war shock. This shift from the 2022 energy crisis suggests that a weaker economy and subdued consumer demand are currently limiting corporate pricing power across the region.
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Only 32% of major Eurozone companies are raising prices following the conflict in Iran, down from 66% after the invasion of Ukraine. A Reuters analysis of 175 earnings calls shows weak demand is curbing corporate pricing power across the currency area. Subdued price pass-through suggests the ECB may delay further interest rate hikes beyond the expected move next week.
