EU’s Gentiloni sees energy price cap curbing inflation in 2023

(Bloomberg) — European inflation is expected to moderate in 2023 if measures taken to cap Russian oil and gas prices prove effective, EU Economy Commissioner Paolo Gentiloni said.

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(Bloomberg) — European inflation is expected to moderate in 2023 if measures taken to cap Russian oil and gas prices prove effective, EU Economy Commissioner Paolo Gentiloni said.

Gentiloni, in an interview with Bloomberg TV at the Ambrosetti Forum in Cernobbio, Italy, said he was confident that “parallel” initiatives by the Group of Seven industrialized countries and the European Commission would gradually reduce inflation.

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Energy price hikes have contributed about 40% of recent consumer price increases in Europe, he said, more than in the United States.

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“I’m not saying it’s going to go back to what it was two years ago, of course, but it will peak and it will start to decline, maybe next year,” Gentiloni said.

His assessment is in line with the European Central Bank’s July survey of professional forecasters, conducted ahead of the latest round of energy price spikes, which predicted a sharp drop in eurozone inflation in 2023 and more in 2024.

G-7 finance ministers agreed on Friday to a plan to implement a global price cap on oil purchases from Russia that will take effect from December. In addition, the European Union is considering options to impose a price limit on energy.

The commissioner, who was Italy’s prime minister from 2016 to 2018, also said Europe could do more to ease the energy crisis by focusing on common public procurement, which he described as a “step forward”. key.

Yet, designing a common strategy for energy purchases is “not easy, because oil and gas are not like vaccines. You have very long-term contracts in different member states, different giant companies,” he said.