Weekly Economic Briefings - Eurozone Weekly Economic Briefing - Eurozone
Russia’s invasion of Ukraine means that the economic impact of the conflict on Europe will be larger than we previously assumed. Our new baseline sees higher gas, oil and food prices over the medium term, as well as increased disruption in financial markets and greater sanctions on Russia by the EU, UK and US. This means an even ‘higher for longer’ period of inflation in the euro area, with increased risks of it becoming entrenched and a larger impact on households’ real incomes and industries’ supply lines.
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