April 25, 2022
The war in Ukraine and the economic impact of the COVID pandemic in China are continuing to drive a rise in prices, the EU’s statistical office says. Inflation has reached the highest rate since the euro was introduced.
Prices for goods and services in the Eurozone reached an all-time high in March amid spiraling energy prices caused partly by the conflict in Ukraine, the European Union’s statistical office said in a press release last Thursday. Eurostat revised its previous estimated year-on-year inflation rate for consumer prices in March to 7.4% in its definitive assessment, down from an earlier assessment of 7.5%.
That is far above the 2% rate targeted as optimal by the European Central Bank’s (ECB) policy. The year-on-year inflation rate in February was 5.9%.
What is causing the rising inflation?
ECB experts believe that Russia’s invasion of Ukraine and the ensuing conflict will continue to drive inflation for some time. The main inflationary factor is the massively rising cost of energy. Energy prices rose 44% in March in a year-on-year comparison. The harsh anti-COVID measures imposed in China as part of its zero-COVID strategy have, however, also contributed to global inflation, with Chinese economic hubs sometimes severely impacted by lockdowns.
The current inflation rate is the highest recorded since the EU’s common euro currency was introduced in 1999.
Source: DW News
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.