The head of the European Central Bank, Christine Lagarde, has warned that businesses may be quicker to raise prices in response to the oil shock from the Iran war due to memories of the previous inflation spike after Russia's invasion of Ukraine in 2022. The ECB brought the 2022 inflation spike under control with higher interest rates. However, Lagarde noted that monetary policy cannot lower oil prices and that central banks typically look past transitory energy spikes without raising interest rates, and that raising rates only makes sense if higher energy prices start to be built into prices for other goods and wages, leading to a price spiral.