Europe’s Workers Brace for Tough Times as Real Wages Fall

Europeans are likely to see real wages fall faster than their U.S. counterparts, as Russia’s invasion of Ukraine sends inflation on a fresh surge, threatening to push the continent into recession.

Until the invasion, European inflation rates looked set to remain below their U.S. equivalent, reflecting a slower economic recovery from the Covid-19 pandemic. This changed after the war started, sending food and energy prices surging in Europe.