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Inflation and the cost of living

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Anna Schwartz

FISCAL POLICY

Capping the price of energy

But at what cost?

Energy price rises are a major driver of increasing household bills and the cost of living crisis. In this article, Isaac Delestre examines these growing costs and the effects of the cap on prices

No commodity is more vital to the modern economy than energy. From the petrol in our cars, to the gas that heats our boilers and the electricity that lights our homes, living without a readily available supply of energy is something that few of us can imagine.

In recent months, however, the availability of this economic lifeblood has been thrown into question. Since its invasion of Ukraine in February 2022, Russia — which boasts by far the world’s largest reserves of natural gas — has begun turning off the taps to the pipelines that, in 2021, supplied Europe with around 40% of its gas.

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Previous

Inflation and the cost of living

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Anna Schwartz

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