European Central Bank analyzes evolving energy price dynamics in 2026

Manu: Ana-Simona Manu is a Team Lead Economist at the European Central Bank in the International Policy Analysis division. Manu co-authored the July 2026 ECB Blog post on energy shocks and has contributed to research on gas market shocks and inflation expectations. Demuth: L. Demuth is an economist at the European Central Bank specializing in energy and macroeconomics. Demuth co-authored the July 2026 ECB Blog post examining the distinct features of the 2026 energy price shock compared to earlier episodes. Stalla-Bourdillon: Arthur Stalla-Bourdillon is a Senior Economist at the European Central Bank in the International Policy Analysis division. Stalla-Bourdillon co-authored the July 2026 ECB Blog post analyzing reduced pass-through from gas to electricity prices and has written on geopolitical impacts on energy markets. European Commission: The European Commission develops and coordinates EU energy policy, including measures to address market volatility and security of supply. It has advanced initiatives such as AccelerateEU to coordinate national responses to energy crises and promote resilience. Its 2026 Spring Economic Forecast examined evolving gas-electricity price linkages in a volatile system. European Central Bank: The European Central Bank is the central bank for the euro area, responsible for monetary policy and maintaining price stability. It publishes regular analysis on economic developments, including the transmission of energy price shocks to inflation. Recent statements highlight that energy price movements influence but do not dictate interest rate decisions, with broader factors like growth also considered. Policy Coordination: EU-level initiatives focus on temporary and targeted support for sectors exposed to energy price spikes while advancing measures to improve energy system resilience. Market Structure Changes: Liberalization in retail energy markets has introduced more flexible tariffs that strengthen links between wholesale prices and consumer bills in several countries. Monetary Policy Response: Central bank officials emphasize that interest rate decisions incorporate energy price effects alongside broader economic indicators such as growth and consumption.