How a Gas Price Drop Could Call Off a Euro-Area Recession

Wholesale gas prices have fallen since the summer. If the weather is mild, citizens heed the call to curb energy use and some of the worst outcomes get priced out of markets, Europe might benefit from a further drop in energy costs, according to research by Bloomberg Economics. That could transform the outlook for the economy and mean a painful recession is avoided. It would also ease pressure on the European Central Bank to lift interest rates as inflation slows faster than forecast.