the head of the ECB warned that the most serious consequences of the energy crisis are still ahead.

💶 European Central Bank President Christine Lagarde stated that the rise in prices for electricity and fuel has not yet fully reflected on the economy of the eurozone.

📊 According to the results of September 2026:

🔹 Inflation in the eurozone rose to 3.8% against 3.2% in August.

🔹 Energy carriers rose in price by 18.9% year-on-year.

🔹 Interest rates on mortgage loans reached 3.6%.

🔹 Business lending is becoming more expensive, and banks are tightening requirements for borrowers.

⚠️ The main risk is a further increase in the cost of living. Expensive energy can lead to a rise in prices for goods, products, and services, while simultaneously slowing economic growth.

🏦 At the same time, the ECB decided for now to leave the three main interest rates unchanged. The main goal of the regulator is to return inflation to 2%.

🇨🇾 What does this mean for Cyprus?

A prolonged increase in the cost of energy may intensify pressure on family budgets and business. Expenses on electricity, fuel, and transportation remain particularly sensitive.

❗️Lagarde warned that the scale of the consequences will depend on the duration of the energy crisis and the development of the international situation, including conflicts in the Middle East and in Ukraine.

@cyprus_kipr