Economics

Runaway Inflation Flashes Recession Warning on Euro Zone’s Edge

  • Estonian central bank says GDP may shrink as war also weighs
  • Russia’s invasion is damaging sentiment, stoking energy costs
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Consumer prices are surging so quickly on the euro area’s eastern fringe that Estonia is predicting a recession -- a cautionary tale for the European Central Bank as it struggles to wrest control of record inflation amid Russia’s invasion of Ukraine.