As inflation rates have climbed, the European Central Bank has sped up its policy response and said that the era of negative interest rates could be over as soon as September. European leaders reached a political deal early Tuesday morning on an embargo on most Russian oil imports, a once unthinkable measure that is aimed at punishing Russia but that economists say will also further hurt European households and industry by pushing prices even higher. Germany, Europe’s biggest economy, has been among the hardest hit, with inflation there rising 8.7 percent. France (5.8 percent), Spain (8.5 percent) and Italy (7.3 percent) also saw consumer prices continue a monthslong climb, prompting lawmakers in those countries to offer caps on energy prices or rebates for low-income households to offset the cost of gas and diesel. In Germany, starting in June, for example, the government will offer reductions for the price of gas at the pump and a monthly $10 ticket for public transport across the country.

Source: New York Times May 31, 2022 17:20 UTC