(Bloomberg) -- Tensions between Russia and the West have helped push European natural gas prices to record highs, adding to the impact of dwindling inventories and intermittent renewables production. The European Central Bank has already thrown in the towel on energy prices falling in 2022, the danger is they rise further: Should negotiations with President Vladimir Putin break down, higher gas prices could see euro-area inflation end the year substantially above the ECB's 2% target. Emboldened by the persistent overshoot, there'd be a risk of hawks on the Governing Council pushing for an early end to bond buying, according to Bloomberg Economics.
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