A Price Voters May Not Be Willing to Pay: Balance of Power

First it was semiconductors. Then food. Now it’s electricity.

Companies, factories and households worldwide are being hit on all sides by supply crunches, and it’s leaving governments scrambling for solutions. Shortages of bacon and milk (and the ubiquitous toilet paper) are one thing. But throw higher power bills on top and it’s a potentially explosive mix with voters.

Soaring gas and electricity prices, compounded by unusually strong demand in Europe during the northern summer, could fuel inflation fears heading into winter’s even greater demand. However much that actually feeds into price reality may not matter, if people simply believe their ...