Surging inflation likely to throttle European economic recovery

Energy prices in Europe have been surging since the start of the Russia-Ukraine conflict, pushing inflation to a higher level and possibly denting Europe’s hope that its economic recovery can pick up momentum in 2022.

SOARING INFLATION

Euro area annual inflation is expected to be 5.8 percent in February, beating the January reading of 5.1 percent, for a new record high, according to the statistical office of the European Union.

Energy, which saw a price surge of 31.7 percent, has been identified as the predominant contributor to inflation in February.

The Russia-Ukraine conflict compounded inflation pressures in Europe by driving up energy prices because of the fear that Russia, as a leading energy supplier, could curtail or even cut off its energy flows to Europe.