Counting the Cost

Inflation and an energy crunch, what’s next for Europe’s economy?

European Central Bank raises interest rates for the first time in more than a decade.

Europe is struggling to put out fires hurting its economy on several fronts. But it is the rising cost of heating homes and feeding families that many Europeans probably find most worrying.

Annual inflation in the European Union reached almost nine percent in June. The European Central Bank has raised interest rates by half a percentage point to try to rein in price increases.

It was seen as an act of solidarity in the face of what EU countries say is energy blackmail by Russia. The bloc agreed to a plan to cut gas consumption by 15 percent as Moscow announced another cut to supply.