European Central Bank Chief Economist Philip Lane said in an interview that the eurozone's high energy costs have not yet triggered second-round inflation effects, and the strength of such pass-through remains uncertain.
"So far, we have not observed very significant second-round effects, but we will continue to monitor them closely," Lane said in an interview published on Tuesday.
"That is why, although I advocate the use of scenario analysis, it would be too simplistic to simply assert that we are in an 'adverse scenario' or a 'baseline scenario.'"
Lane added: "Energy prices remain elevated, but the strength of their transmission to other parts of the economy is still uncertain."