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المشهد العربي
Ouli Rein: Middle East energy surge not raising wages
Ole Rinn, Governor of the Bank of Finland and a member of the European Central Bank Governing Council, warned that the energy price shock resulting from the conflict in the Middle East has not yet affected wage levels. However, he pointed out the possibility that these pressures could gradually emerge in the future. He explained that Europe has had to raise borrowing costs twice since the start of the clashes due to rising energy prices, which caused inflation to exceed the 2% target range. Despite weak growth, the eurozone economy has remained resilient thanks to strong domestic demand, which helps pass on the increased costs to consumers, thereby increasing the risks of an energy shock expansion and rising inflation.
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