Security Concerns and Energy Crisis Cause Gas Prices to Surge, Challenging Consumers and Straining Central Bank's Inflation Targets

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Security Concerns and Energy Crisis Cause Gas Prices to Surge, Challenging Consumers and Straining Central Bank's Inflation Targets

At the beginning of this week, the suspension of gas production at Israel's Tamar gas field in the Eastern Mediterranean, prompted by security concerns, led to an increase in gas prices. This surge in prices is expected to impact both consumers and businesses during the winter season, potentially hindering the central bank's efforts to achieve its inflation target. Furthermore, Europe is entering its second winter without the significant amount of gas previously received from Russia, which was disrupted due to the Ukraine conflict. Although some forecasts predict a milder winter, mitigating gas demands, the energy crisis is still unresolved, and an impending cold spell is anticipated in the following days.