The energy price shock due to the Russian invasion of Ukraine, together with the sanctions, risks causing “a worsening of growth prospects” and, as a consequence, “greater downward pressure on medium-term inflation after the sharp increases observed until now”. This was stated by the Governor of the Bank of Italy Ignazio Visco speaking at the conference “The Ecb and Its Watchers XXII”. Visco warned that the growth scenario has “seriously worsened” compared to the latest ECB estimates, which already reduced growth to 3.7% this year and 2.8% next.
The war, Visco further stated, “has considerably increased the extreme risks. I am referring mainly to the worrying possibility of a gas shortage that would push energy prices even higher, or force gas and electricity rationing for some time. stopping production “.
Source: Ansa
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