Price caps for gas and oil will help Europe curb inflation

European inflation in 2023 will once again be moderate. But it is necessary to put global price caps on Russian oil and gas for this to happen. Such caps are already planned by both G7 and the EU. These theses were expressed by Paolo Gentiloni, European Comission commissioner, in an interview with Bloomberg.

Gentiloni persuaded the G7 and the European Commission to introduce parallel measures. Energy price hikes have already increased prices for European consumers by 40%, he says. This peak will gradually subside in 2023 and 2024. But it needs «assistance». Following it, inflation will also begin to lessen. After all, energy prices are one of its key factors.

G7 ministers of finance have began drafting the price cap plan on Friday, September 3rd. The price limits themselves will come into effect in December. The European Union is also preparing for similar measures. But no concrete steps have been taken yet.

Almost simultaneously with the G7 message about the upcoming price restrictions, Gazprom has closed Nord Stream for an indefinite period.