European Central Bank Governing Council member Jose Luis Escrivá has indicated that elevated oil prices are beginning to exert an influence on other sectors of the economy.

Beyond the direct increase in energy costs across all economies, particularly from oil, secondary effects are becoming increasingly evident. This signifies that price rises are being transmitted through production chains and into goods, such as in the transport or food industries, which rely on inputs like plastics or energy, he told Spanish lawmakers in Madrid on Tuesday.

Escrivá also noted that the process of raising interest rates is aimed at addressing "its impact on inflation beyond 2026 and 2027, especially in the more persistent components of inflation, particularly in services where inflation persistence is very strong."