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9/24, 7:24 AM (Source: TeleTrader)
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Lagarde: Energy price volatility may last longer

European Central Bank (ECB) President Christine Lagarde told CNBC that the volatility in energy prices may last beyond the current supply shortage amid the COVID-19 pandemic.

"Energy is going to be a matter that will probably stay with us longer. Because we are transitioning, as well, from fossil industry-driven sources of energy," Lagarde stated and added her "hunch is" that the transition to renewable sources of energy "is likely to be pushing prices up for a short period of time and probably later on it might have some deflationary impact."

Earlier, European Commission Vice President Frans Timmermans noted the surge in energy prices amid supply issues is likely to speed up the transition towards renewables. Natural gas prices have soared over 450% in the past 12 months, while oil prices jumped 85% in the same period.

Breaking the News / NP