Inflation

European inflation looks set to stay

The risk of recession looms over the continent as prices spike

Inflation across Europe has soared to 10 per cent. Picture: Getty

When pandemic inflation took off last year, it was seen as more likely to stick around in the US -- where stimulus was much bigger and consumer demand stronger -- than in Europe. But the energy crisis has upended that picture.

Euro-area price increases have now outpaced the US for two straight months. The gap likely widened in September, when Europe-wide inflation hit 10 per cent while in Germany it accelerated to 10.9 per cent. ...