Finance
Energy Prices Likely to Hit Wider Economy More Quickly Than in 2022, ECB's Sleijpen Says
Published by Global Banking & Finance Review®
Posted on March 24, 2026
2 min readLast updated: March 24, 2026
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ECB Governing Council member Olaf Sleijpen warned on March 24 that surging oil and gas prices may feed into wider inflation more swiftly than during the 2022 energy crisis. He highlighted that heightened alertness to price shocks now accelerates potential second‑round effects, with key data expected
ECB’s Sleijpen: Energy Prices Expected to Ripple Through Economy Quicker Than 2022
ECB Insights on Energy Prices and Economic Impact
By Bart Meijer
Rising Oil and Gas Prices: Faster Economic Transmission
AMSTERDAM, March 24 (Reuters) - Soaring oil and gas prices are likely to become entrenched in the wider economy more quickly than during the 2022 energy crisis, Dutch Central Bank Governor Olaf Sleijpen said on Tuesday.
ECB’s April Meeting: Monitoring Second-Round Effects
The Dutch representative on the ECB's Governing Council said he and colleagues will have more information at their April meeting on the second-round effects, which occur if companies hike their prices to offset higher input costs and employees demand higher wages.
ECB’s Response to Market Developments
"We can't control oil and gas prices, but we can act if we see second-round effects. I think we will have more information on that front in April," he said in reference to the ECB's next rate-setting meeting on April 30.
Comparing 2022 Crisis to Current Situation
Sleijpen said in 2022, when the start of the Ukraine war drove up energy costs, the economy had been in a period of low inflation so it took people longer to get used to the rise in prices and realise the impact on their spending power.
"Everybody is more alert now, so the shock can more easily ripple through the economy," he said in comments to reporters in Amsterdam.
Key Indicators and Data Limitations
Sleijpen said inflation expectations and producer prices would be key indicators for the ECB during the April meeting, but said data would still be incomplete.
"It will be limited, but we will have to work with it," he said.
"The complete picture will not have emerged between last week and the end of April."
(Reporting by Bart Meijer; editing by Barbara Lewis)
Key Takeaways
- •Energy cost increases today may translate into broader inflation more quickly than during the 2022 crisis due to heightened public and business vigilance.
- •ECB officials, including Sleijpen, expect to rely on indicators like inflation expectations and producer prices—though data will still be incomplete—for decision‑making at the April 30 meeting.
- •Markets are already pricing in the risk of ECB rate moves as energy shocks (e.g. from the Iran war) raise concerns about entrenched inflation and potential policy tightening.
Frequently Asked Questions about Energy prices likely to hit wider economy more quickly than in 2022, ECB's Sleijpen says
1Why are energy prices expected to affect the wider economy more quickly than in 2022?
According to Olaf Sleijpen, people are more alert to rising prices now, so shocks can ripple through the economy more easily compared to 2022.
2What are second-round effects in the context of energy prices?
Second-round effects occur when companies raise prices to offset higher costs and employees demand higher wages, amplifying inflation.
3What indicators will the ECB monitor regarding rising energy prices?
The ECB will closely watch inflation expectations and producer prices to assess the economic impact of rising energy costs.
4When will the ECB have more data on the effects of energy price increases?
More information is expected to be available at the ECB's next rate-setting meeting in April.
5Can the ECB control oil and gas prices directly?
No, but the ECB can act if significant second-round effects manifest in the economy.
