Record inflation: Which countries in Europe are being worst hit as energy and food prices soar?

According to the most recent forecast from the EU statistics authority, yearly eurozone inflation will be 9.1%. Eurozone inflation is already at record highs.

Prices for food, alcohol, tobacco, non-energy industrial goods, and services are all higher according to the August estimate than they were in July, when annual inflation in the eurozone was predicted to be 8.9%.

Energy inflation was estimated by Eurostat to be 38.3% in August, down from 39.6% in July.

Particularly in Estonia and the Netherlands, where inflation increased by 2% and 2% from July’s statistics, respectively, in August.

The UK’s inflation rate soared to a 40-year high of 10.1% in July, according to data released on August 17 by the Organisation of National Statistics (ONS).

In the midst of the greatest inflation increase since 1982, the UK’s national statistics office noted that increases in food prices provided the strongest upward contributions to annual inflation rates between June and July.

The inflation rate in the eurozone has increased from 7.4% in April as Europeans continue to experience skyrocketing oil and food costs fueled in part by Russia’s conflict in Ukraine.

The preliminary estimate published on August 31, is the highest since recordkeeping for the eurozone began in 1997.

Every region of the continent is seeing price increases, and several issues are impeding Europe’s anticipated economic recovery from the coronavirus outbreak.

The inflation rate in Russia is 15.1% for the month of July, down from 17.1% in May.

Here is a look at the inflation rate in each country in Europe: The European Central Bank increased interest rates for the first time in 11 years by a larger-than-expected amount in order to target persistently rising inflation, following in the footsteps of its colleagues in other areas of the world.

The decision, which was made public on July 21, raises further concerns about whether the hasty increase in credit costs could send major economies into a recession at the expense of lowering prices for consumers who will spend more on food, fuel, and everything in between.

Another hike is anticipated to occur in September after this.

What’s causing these inflation rates?

Before Russia invaded Ukraine in late February, energy prices were already skyrocketing in Europe and much of the rest of the world, which causes inflation.

The battle has made the energy situation worse by increasing concerns around the world that Russia’s oil or natural gas supply could be interrupted.

Russia now provides around a quarter of the EU’s energy needs in the form of coal, natural gas, and oil.

A voluntary initiative is under way to limit demand for Russian natural gas by two-thirds this year in addition to an EU ban on Russian coal that is set to take effect in August.

Since the first COVID-19 pandemic lockdowns were implemented two years ago, the prices of various commodities have also been rising, most importantly the price of food. This has strained global supply systems, caused crops to decay, and sparked panic buying in shops.

Given that Russia and Ukraine export roughly a third of the world’s wheat and barley as well as two-thirds of its exports of frying sunflower oil, the prognosis was once again significantly affected by the conflict in Ukraine.
Additionally, Ukraine is the fourth-largest exporter of grain worldwide.

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