0623 GMT - The European Central Bank is in an increasingly uncomfortable position as escalating tensions in the Middle East, coupled with disruptions to energy supply, are once again clouding the inflation outlook in the euro area, says Candriam CIO Nicolas Forest in a note. "After several meetings marked by a clear disinflationary trend, the recent rebound in oil prices and persistent geopolitical risks now pose tangible upside risks to inflation for the ECB," he says. These pressures are likely to materialise not only through direct energy costs, but also via second-round effects on wages and services, he says. "At the same time, eurozone growth remains subdued, leaving the economy vulnerable to further shocks." (emese.bartha@wsj.com)
(END) Dow Jones Newswires
March 20, 2026 02:23 ET (06:23 GMT)
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