Based on these developments the ECB’s indicator for producer price pressures (IPPI) estimates that the pressures on goods inflation are likely to be close to their peak and to decline over 2023. [16] However, there remain upside risks to the extent that previous increases in pipeline pressures have not yet fully passed through to goods inflation.
The increase in the intensity and frequency of extreme weather events has obvious, and major, social, as well as economic, consequences. Central banks and supervisory authorities, international institutions and market participants have therefore been paying significant and increasing attention in recent years to developing a better understanding of the implications of climate change for the financial sector and financial stability.