The European Central Bank intends to act in a timely and measured manner to prevent the current energy shock from transforming into entrenched, long-term inflation. This was officially stated on Friday by ECB governing council member Fabio Panetta during his policy address. He emphasized that the latest forward-looking inflation outlook clearly indicates an urgent need for adjusting monetary policy framework across the entire eurozone.

Panetta, who also serves as the governor of the central bank of Italy, specifically highlighted the importance of the upcoming June ECB meeting. During this critical session, the monetary authority's leadership will comprehensively assess how deeply the recent surge in energy commodity prices is impacting headline inflation. According to the Italian central bank chief, oil and natural gas prices are unlikely to return to normal anytime soon, even if the emerging geopolitical conflict in Iran is resolved swiftly. Consequently, European financial authorities must establish a robust protective strategy to ensure that temporary market volatility does not escalate into a chronic structural issue for the broader European economy.