Many European Countries Battling with High Inflation

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Many European Countries Battling with High Inflation
02 Apr 2022
6 min read

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News Synopsis

According to European Union data released on Friday, Inflation in Europe has reached to another level. The war between Russia and Ukraine has significantly increased the energy prices in the region and has forced the central bank to hike interest rates. As per the European Union statistics agency, Eurostat, Consumer prices in 19 euro using countries have increased by 7.5 percent in the month of March. This has broken the earlier record of highest consumer prices of 5.9 percent. This is also the highest consumer prices level since recordkeeping for the euro began in 1997. In his report, Jack Allen-Reynolds who is a senior Europe economist at Capital Economics said: "We think that the ECB will soon conclude that it can't wait any longer before starting to raise interest rates." Meanwhile, former European Central Bank president, Italian Premier Mario Draghi, said: "Inflation is rising because raw materials prices are going up, in particular those for foodstuffs. Those are the ones that hit hardest a family's buying power. Shortages in some raw materials create a bottleneck in production and force further price hikes.''

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