European Central Bank Executive Board Member Panetta stated that it is necessary to prevent inflation caused by war from pushing up wages.

Fabio Panetta, a member of the European Central Bank's Governing Council, stated that policymakers must prevent war-induced inflation from driving up wages, while also warning that policy responses should not be too aggressive. The Governor of the Bank of Italy, Panetta, said on Tuesday in Rome at the bank's annual shareholder meeting that the impact of the Iran crisis may last longer than the current conflicts in the Middle East. "A highly uncertain environment is taking shape and may persist beyond the phase of intense conflict," he said. "It is necessary to closely monitor expectations, prevent wage-price spirals, and ensure that monetary policy actions remain moderate and consistent with the European Central Bank's mandate." Panetta's comments suggest that as the war enters its second month, the ECB's policy approach may be evolving.