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Inflation Anxiety Awaits Europe as Businesses Ponder Prices

  • Demand for services such as hairdressers, hotels set to jump
  • But job losses, supply gluts may keep business owners cautious
Demand for hotels is set to jump when virus restrictions end.
Demand for hotels is set to jump when virus restrictions end.

Photographer: Laurel Chor/Getty Images 

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Europe’s consumer-facing companies face a critical choice for when the pandemic passes: should they exploit the expected pickup in business by raising prices?

There’s likely to be a rush to hairdressers, restaurants and tourism agencies reopening when virus restrictions end, fueled by pent-up demand and a hoard of cash accumulated after more than a year of forced saving.