Eurozone faces self-reinforcing price spiral risk from Middle East war

Eurozone inflation expectations are at risk of rising more quickly ​than in the past and the European Central Bank must be ready to raise interest rates swiftly if ‌signs of persistent price pressures emerge, ECB policymaker Dimitar Radev said.

Surging energy costs prompted by the Iran war have already pushed inflation well above the ECB’s 2 per cent target and policymakers are now debating whether to tighten policy to prevent