CEE fuel inflation risks persist despite oil price dip
Fuel inflation in Central and Eastern Europe could reaccelerate as annual comparisons become less favorable, even with recent oil price moderation.
Despite a recent pullback in global oil prices, retail fuel inflation across Central and Eastern Europe faces renewed upward pressure. The year-on-year comparison base is turning unfavorable, meaning the annual rate of fuel price increases may strengthen over the coming months.
This base effect could keep consumer inflation elevated in the region, posing a challenge for central banks that are already monitoring price stability.
The risk is particularly relevant for countries where fuel carries a heavy weight in the consumer basket, potentially influencing monetary policy expectations.
Source: FXStreet Forex News