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Therese Raphael

Britain and Europe Have Two Common Enemies Now

While Russia makes Brexit spats look petty, the new “shrinkflation” — slowing growth and rising inflation — poses a similar challenge to UK and EU central bankers.

European Union And Great Britain Flags
Photographer: NurPhoto/NurPhoto

This column was co-written by Marcus Ashworth.

Inflation is soaring, which is usually the cue for central bankers to kick into high-gear. This time, they are finding it much harder to manage, thanks in part to a lack of headroom after years of overly accommodative monetary policy.