Wholesale Gas Prices Are Reaching Consumers Faster, ECB Says
The ECB said wholesale gas price changes now reach gas inflation within 1 to 3 months in more than half of euro area countries.
- On Monday, the European Central Bank said natural gas price surges will feed into euro zone inflation faster than in the past, though electricity costs face less intense impacts due to renewable production.
- Wholesale natural gas prices are up more than 140% compared to a year earlier as the war in Iran limited global supply, and low storage levels in Europe raise risks of further price increases.
- A survey by central banks found changes in wholesale gas prices pass to inflation within 1 to 3 months in over half of euro area countries; the share reporting slow pass-through within 13 to 24 months decreased from around 40% to around 5% since 2022.
- Inflation is already above 3%, exceeding the ECB's 2% target, with economists expecting it to reach 4% by year-end, pressuring the bank to raise interest rates after two recent hikes.
- Gas markets have liberalized across Europe since Russia's 2022 war on Ukraine, allowing retail prices to respond more quickly; the ECB noted in its Economic Bulletin that renewable production reduces gas's role in electricity costs.
21 Articles
21 Articles
Strong growth in gas prices could be transmitted faster in inflation in the euro area than in the past, warns the ECB. Instead, electricity bills could feel less shock, as renewable energy occupies an increasingly important place in European production.
Europe's gas price surge will feed further inflation amid energy crisis, ECB warns
Recent findings from the European Central Bank highlight a growing economic challenge for the eurozone as wholesale natural gas price spikes are feeding into consumer inflation much faster than...
Europe's gas price surge may feed into inflation more quickly, ECB ...
Wholesale Gas Prices Are Reaching Consumers Faster, ECB Says
The surge in wholesale natural gas prices is set to pass through the retail and electricity inflation in the Eurozone faster than in the past, the European Central Bank (ECB) said in its Economic Bulletin on Monday. While the pass-through is faster and can manifest in the inflation numbers within one to three months for most Eurozone members, the pressure on electricity prices has been lower so far in 2026 compared to 2022, partly due to the hig…
An analysis of Frankfurt certifies the delay of the Peninsula compared to Spain and France. The shield of renewables slows the increases in the rest of Europe, while from us the electricity remains bound to methane penalising the competitiveness of the enterprises. Accelerates the transmission of the costs to retail, with taxes and charges of system that still weigh for 27% on the final rates of light
Increases in the price of natural gas are likely to be reflected in inflation in the euro area faster than in the past, but will have a lower impact on electricity costs due to increased production of renewable energy, the European Central Bank (ECB) said in a published Economic Bulletin.
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