Fuel prices have been rising significantly, putting pressure on inflation in the Euro Zone. This escalation is affecting the region's economic indicators, creating concern among policymakers and economic officials.
However, core inflation, which excludes the more volatile prices of energy and food, has remained virtually unchanged. This data indicates that price transmission between the energy sector and other products consumed in the Euro Zone has been limited so far.
Economists consulted on the situation acknowledge that price transmission has been contained, but warn that a more significant transmission cannot be ruled out over a longer time horizon. The situation continues to be closely monitored.




