Analysis-East Europe’s party is over as double-digit inflation bites

Published by
Reuters

By Krisztina Than ESZTERGOM, Hungary (Reuters) – In the weeks that followed Russia’s invasion of Ukraine, western Europe’s big economies began to falter. But further east it was still boom-time thanks to double-digit wage hikes and generous state handouts in some countries. Not any more. A sharp slowdown in retail sales and plunging confidence indicators show that the cost of living crisis has caught up with Europe’s eastern wing, where people now face a harsh reality check as stubborn double-digit inflation erodes their incomes while food price rises top 15%-22% and energy costs soar. As hous…

Read More