(NYT) As Inflation Stalks Europe, Leaders Shudder

The situation is arguably even more dire on continental Europe. The annual inflation rate in the European Union is now at its highest in decades — 10.9 percent in September, up from 3.6 a year earlier.

That is worse even than in the United States or Britain, and it is being driven largely by the bloc’s unique and anguishing withdrawal pains as it tries to punish Russia’s president, Vladimir V. Putin, for his invasion of Ukraine by quitting its long dependence on cheap Russian gas.

As winter approaches, Europe’s united turn away from Russian energy is beginning to bite in households everywhere, eroding living standards and in some countries threatening to chip away at the united front for sanctions against Russia.

Mario Draghi, the departing prime minister of Italy and an architect of the continent’s united line against Russia, warned as much would happen if Europe failed to reach a deal to cap prices on the alternative gas imports.

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Posted in * Economics, Politics, Economy, Europe, Politics in General