Russian energy dependence and European inflation'

Despite a common monetary policy and closely synchronised business cycles in the euro area, the increase in inflation since the outbreak of war in Ukraine has varied considerably across member states. As the increase in inflation across the EU is positively associated with energy dependence on Russia, the overreliance on Russian gas and oil supplies may turn out to be rather costly both economically and politically. More evidence-based policy advice is warranted (rather than following groups with a vested interest).