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Inflation & Prices

Inflation in Europe Now Looks Even Less Transitory Than in US

  • Prices climb faster, more broadly in energy-squeezed euro area
  • Recession risk and wage losses are also bigger in EU than US

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% while in Germany it accelerated to 10.9%. US numbers aren’t due out for another 10 days.