Inflation, Russia-Ukraine war draw G7 finance leaders’ focus

By FATIMA HUSSEIN and FRANK JORDANS
Associated Press

KOENIGSWINTER, Germany (AP) — Finance ministers for the Group of Seven leading economies are grappling with deepening inflation concerns and the immediate effects of Russia’s war in Ukraine, with U.S. Treasury Secretary Janet Yellen warning that it all adds up to a “very difficult economic situation.” Yellen said the allies would put together enough additional aid to help Ukraine get through the war. But she warned that ongoing sanctions against Russia could generate some blowback for the U.S. and its allies, causing higher inflation worldwide. Yellen told reporters that with the war continuing and with sanctions continuing to be applied, “we may face more inflationary risks to the global economy.” The finance ministers are holding two days of meetings in Germany.