Oil

Libyan crisis may boost inflation

Published on 25 February 2011 at 12:24

Cover

"Rising oil prices fuel inflation," headlines La Vanguardia. According to the Spanish daily, markets are worried that "the ECB will anticipate a rise in interest rates to counteract inflation.” In London, the Financial Times reports that Saudi Arabia has entered “active talks” with European companies, and asked European refiners “what quantity and what quality of oil” they will need to make up for the shortfall caused by the suspension of 25% to 75% of Libyan oil supplies. Warning that an inflationary scenario "will have to be fought by a more stringent monetary policy than the one currently in place," La Vanguardia expresses its concern over an increasingly "sombre outlook for economic recovery."

Was this article useful? If so we are delighted! It is freely available because we believe that the right to free and independent information is essential for democracy. But this right is not guaranteed forever, and independence comes at a cost. We need your support in order to continue publishing independent, multilingual news for all Europeans. Discover our membership offers and their exclusive benefits and become a member of our community now!

Are you a news organisation, a business, an association or a foundation? Check out our bespoke editorial and translation services.

Support independent European journalism

European democracy needs independent media. Join our community!

On the same topic