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Italy's inflation trap squeezes energy policy room

Original: inflazione

Italian inflation is back in the spotlight, with Corriere della Sera examining the so-called 'bond trap': rising debt-servicing costs tied to inflation and interest rates are limiting the Italian government's room for manoeuvre on energy policy. The report suggests the dynamic affects not only Italy but other eurozone economies facing similar fiscal constraints as they try to cushion households from high energy prices.

Why now: Fresh concern over how inflation-driven bond costs are constraining Italy's ability to respond to energy prices

ItalyCorriere della SeraeurozoneEuropean Central Bank

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Evidence

• La «trappola dei bond»: ecco che cosa riduce per l'Italia (e non solo) i margini di manovra sull'energia · Corriere della Sera

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