Pressure is increasing on Europe’s economy as Russia’s war in Ukraine continues. Growth and inflation are already soaring, data and warnings from policymakers made clear on Wednesday.

Sanctions on Russia have pushed energy prices to record highs across the continent, raising the risk of another recession.

Germany, the bloc’s biggest economy will be among the hardest hit because they are heavily dependent on Russian Gas. German Government’s council of economic advisers on Wednesday more than halved their growth forecast for this year, to 1.8%.

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European Central Bank President Christine Lagarde warned that, as the conflict drags on, Europe’s economy could suffer more than just a few weeks ago.

“The longer the war lasts, the higher the economic costs will be and the greater the likelihood we end up in more adverse scenarios,” she said in a speech.

In Vienna, Austria’s central bank cut its growth forecast and sharply raised its inflation outlook for this year, saying its new predictions would worsen further if the war dragged on.

Lagarde also noted that households were already becoming more pessimistic and businesses could soon be postponing investment.

Her warning was underlined by a sentiment indicator that showed the war had sent consumer confidence in the euro zone plummeting and inflation expectations to record highs.

The biggest hit to confidence came from inflation, which is decreasing consumer spending power, as many governments quickly roll out subsidies to ease consumer’s pain.

In Spain, one of the bloc’s biggest economies, inflation accelerated to 9.8% in March, the fastest pace since May 1985, from 7.6% in February.