Pandemic and Ukraine have altered Europe’s inflation dynamics – IMF

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The coronavirus pandemic and the Russian invasion of Ukraine may have changed inflation dynamics in Europe, the International Monetary Fund said on October 23.

Policy-makers in the eurozone and other major European economies confronted a decade of below-target inflation. But now they face tough trade-offs involving a tighter monetary policy and high recession risks, the IMF notes.

Rising shortages in labour and inputs are “contributing notably to the recent high-inflation episode”, says Alfred

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