By Marta Vilar – MADRID (Econostream) – European Central Bank Executive Board member Isabel Schnabel said on Thursday that the energy price shock was proving to be “much more persistent” than initially expected.

At an event in Salsomaggiore Terme, Italy, Schnabel said that “[i]nitially, there was still the question: 'Well, maybe this is a short-lived event,' but we unfortunately had to learn that this is much more persistent.”

She said price increases were not just affecting oil anymore, but also diesel and gas.

“We raised interest rates twice,” she said. “So first in June and then again in September, because we are concerned about inflation and that this is why we needed to respond.”