Energy crisis will have persistent impact, French central banker says
PARIS, June 12 (Reuters) - The energy price crisis caused by the Middle East conflict is starting to push broader prices higher and will have a lasting impact regardless how the short-term geopolitical situation develops, Bank of France Governor Emmanuel Moulin said on Friday.
"Three and a half months after the outbreak of the war in the Persian Gulf, it is now clear that, whatever the short-term geopolitical developments may be, the energy crisis will be persistent," he said in a LinkedIn post.
"The rise in oil and gas prices has begun to feed through to other prices in the consumer price index, particularly the prices of certain services, even though we are not yet seeing any second-round effects via wages," he said, adding the ECB's rate hike on Thursday was necessary to keep them contained.
