Inflation in Europe heats up, continues to hit record levels
The cost of living in the eurozone continued to hit a new record high last month. This raises the question of what measures the European Central Bank (ECB) will take to stabilize consumer prices, which are increasing at a dizzying rate today.
Inflation in the region hit 7.5% in March, according to preliminary data from the Eurostat statistics office. For months, inflation has exceeded the ECB’s target and is now more than tripled. times compared with 2% to be considered as ensuring price stability. In February, eurozone annual inflation stood at 5.9%.
Preliminary data from Eurostat shows a sharp increase in prices mainly due to the increase in energy and food prices after Russia launched a military campaign in Ukraine. Energy prices rose to 44.7% from 32.0% in February.
Core inflation, which excludes volatile food and energy prices, rose to 3.2% in March from 2.8% in the previous month. This core indicator is closely watched as the ECB’s measure of price stability over the medium term.
Meanwhile, inflation was particularly severe, reaching double digits in the four member countries, with Lithuania leading with 15.6%. The lowest rate was recorded in Malta, where inflation rose 4.6%, but still more than double the ECB’s target.
These figures are published at a time when the Russia-Ukraine conflict has destabilized the European economy. Accordingly, some economists raise the question of whether the eurozone will fall into recession this year – something European officials have so far denied.
For example, last week, Italian Prime Minister Mario Draghi, said that the Russia-Ukraine conflict will cause economic damage, not recession.
The euro area has taken unprecedented measures to punish Russia when it launched a military campaign in Ukraine. As a result, these sanctions are having an impact on the eurozone’s own economy. In addition, the conflict has caused other problems, notably soaring energy prices and an increase in inflation across the region.
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