LISBON, (Reuters) – Mario Centeno, a member of the European Central Bank Governing Council, warned Wednesday that Russia’s invasion in Ukraine might lead to stagflation in Europe.

At a Lisbon event, he stated that there were “stagflation scenarios” in the future. “It will depend on the length of conflict and the concerted response of Europeans in fiscal policy.

As a result of the invasion, Canada, Britain, Europe, and the United States have put in place a series of harsh sanctions, which include freezing Russia’s Central Bank Reserves and blocking many banks from SWIFT.

Centeno claimed that the punitive measures will likely have a devastating effect on Russia’s economic system. This would be further exacerbated by the expulsion of many large businesses.

Due to rising price pressures, the ECB has had to cancel its plans for preparing markets to receive further stimulus measures during its March 10 meeting.

Although war will likely increase prices more than all projections for this year’s, it will also have an impact on inflation and growth in the long term. This is a longer-term perspective that is relevant to the central bank.

Eurostat data showed Wednesday that the rate of inflation rose to 5.8%, from 5.1% January. That’s more than twice what the ECB wants.