( measured by the employment cost index ) surpassed 4 per cent as early as in the third quarter of 2021, approached 6 per cent in 2022, and today still stands above 5 per cent, a level that is difficult to reconcile with an inflation target of 2 per cent ( fig. 4 ). in the euro area, on the other hand, in spite of current requests for sizeable wage increases in some countries, wage growth has so far remained moderate, around 3 per cent, and there are no clear signs of a wage - price spiral as a whole. fourth, the energy shock had a very different role on both sides of the atlantic. since the second half of 2020, oil prices rose gradually in both the united states and the euro area. 7 the price of the natural gas delivered in the united states increased much more sharply, rising from around $ 10 per megawatt hour before the pandemic to a peak of over $ 30 last summer, before sliding back below $ 10 ( fig. 5 ). however, it was the price of the natural gas delivered in europe that recorded the most extraordinary dynamics, dwarfing even the 1973 oil price increase ( which itself had increased four - fold ) : from slightly above €10 per megawatt hour in early 2020, it rocketed to €180 before the war, soaring to a peak of €350 last summer and then stabilising at around €60 over the past few weeks. a further major problem then emerged, i. e. the extreme volatility of gas prices, the result of a “ bullwhip effect ”, which is the response of demand to uncertain supply, consisting of ordering more, ordering earlier and replenishing gas stocks. as a result of these dynamics, us consumer price inflation increased from below 2 per cent in february 2021 to a peak of over 9 per cent last june ( fig. 6 ). core inflation ( i. e. net of energy and food products ) took the lion ’ s share of this increase, peaking at almost 7 per cent last year. in the euro area, on the other hand, the increase in the price of food ( another consequence of the war in ukraine ) and energy was responsible for the largest share of the rise in headline inflation, with energy costs increasing by about 40 per cent since last spring. considering the combination of direct and indirect effects, in 2022 about 60 per cent of headline inflation was attributable to higher energy prices.

ignazio visco : overview of economic and financial developments in italy concluding remarks by dr ignazio visco, governor of the bank of italy, at the ordinary meeting of shareholders 2011 – 118th financial year, bank of italy, rome, 31 may 2012. * * * ladies and gentlemen, i take the floor at this meeting for the first time in trying days for our country and for europe. days in which we must all – government, institutions and individuals – perform our roles with care, to the best of our ability, because only if everyone does their duty can a solution be found to the crisis we are experiencing. this is the spirit in which the consequences of the grave and tragic earthquake that has hit the region of emilia must be tackled. as on similar occasions in the past, the bank will not fail to provide assistance. the concluding remarks bring to a close the bank of italy ’ s report, which every year covers the international and italian economy and our own activities ; in it we have deployed our analytical skills. referring to the report, i shall give an account, in particular, of the activities specifically entrusted to us : to contribute to drafting and implementing the common monetary policy, financial regulation and supervision. on 1 november last year mario draghi took up the post of president of the european central bank. he had been appointed governor of the bank of italy by decree of the president of italy carlo azeglio ciampi at the end of 2005, at the culmination of a difficult period in the history of the bank and of our financial system. during these years, his efforts, including in the demanding role of chairman of the financial stability board, brought prestige to our own institution and strengthened its reputation both in italy and abroad. his direction was essential for the formulation of european monetary policy, for our supervisory action and for the modernization of the bank ’ s organization and method of operation. the board of directors has appointed him honorary governor. the bank of italy and the country owe much to him. one of his first acts, in 2006, was to propose fabrizio saccomanni for the position of director general. in that role fabrizio supported him with his intelligence and his wide experience, participating in person in every major undertaking of the bank, starting with the logistical and organizational reform of the head office and branch network. i wish to thank him for the invaluable contribution he has continued to make in recent months in running the bank. the challenges