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ECB finds faster transmission of gas-price changes to household inflation
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More countries now pass wholesale gas changes through within three months
A new European Central Bank analysis found that wholesale gas-price changes now reach household gas inflation within one to three months in more than half of euro-area countries. Only about 5% reported transmission taking 13 to 24 months, down from roughly 40% in 2022. Electricity prices have meanwhile become less responsive to gas costs as renewable generation has expanded. The findings describe how prices are transmitted; they do not forecast a particular inflation rate.
Reuters: Europe's gas price surge may feed into inflation more quickly, ECB finds