Free Republic

Economic war with Russia is likely to keep prices high and send growth into reverse but specter of rationing is fading. There is no end in sight for Europe’s surge in energy prices. That could be just what the continent needs to avoid the devastating effects of having to ration natural gas this winter. This is because prices are so high—many times their level from last year—that they are forcing Europeans to save fuel and secure alternative supplies. That has resulted in rising gas reserves and a higher likelihood that the economy will shrink but not crash outright in the...

Sanctions are hitting Russian families at the grocery store as food prices rise amid surging inflation, which is already running at double the rate of the West. Consumers are falling further behind as wages stagnate in a slowing economy. The situation is expected to get worse as inventories run down, sanctions take effect and buyers adopt strategies that could push inflation higher.