The euro zone economy has not returned to its pre-war conditions despite the recent decline in oil prices, as underlying inflationary pressures remain elevated, according to European Central Bank (ECB) Executive Board member Isabel Schnabel. Reuters reported that her remarks suggest policymakers remain cautious about declaring victory over inflation, even as energy markets have stabilised.
Speaking at an event in Rome on Monday, Schnabel said the decline in crude oil prices alone was not enough to restore the economic environment that existed before the conflict. According to Reuters, she pointed to lingering risks in energy markets, persistent supply chain pressures and stubborn core inflation as key factors keeping price pressures elevated.
