ECB's attention shifting to natural gas as prices soar

Other policymakers were more cautious, however, and argued that the ECB should stick to its meeting-by-meeting approach and signal higher rates once more evidence is amassed.

European countries that rely on natural gas for heating hesitated to fill storage facilities over the summer in the hope that the Iran conflict would end and prices fall sharply.

With storage levels far below historic norms, they are now rushing to store gas, helping push natural gas prices to a four-year high. That in turn is likely to push up heating and electricity costs for households and businesses and fuel inflation more broadly.

Some economists argue, however, that the sharp increase in renewable energy production since Russia's invasion of Ukraine and a slowdown in energy-intensive sectors like heavy industry makes the bloc less sensitive to natural gas prices.