Ekonomia

AP News: Inflation reaches record level of 7.5% in euro area countries

AP News: Inflation reaches record level of 7.5% in euro area countries

Inflation broke the record for 19 eurozone countries as a result of rising fuel prices caused by the war in Ukraine, adding a new financial burden to households especially after the pandemic.

Annual inflation reached 7.5% in April, the highest since 1997.

Energy prices rose by 38%. Fears that the war could lead to a disruption of oil or gas supplies from Russia have fueled fuel prices.

High inflation is reflected in politics and economics, while governments adopt monetary support for the most severely affected families.

Germany is removing the tariff for supporting renewable energy on electricity bills, saving a family of four about 300 euros ($ 317) a year. Germany's IG Metall industrial union is proposing an annual increase of 8.2% for the country's steel workers entering wage talks.

Fears of even higher prices for heat, electricity and vehicle fuel are the factor preventing European governments from deciding to ban energy imports from Russia as part of sanctions for Ukraine's occupation of the Kremlin.

Inflation is also putting pressure on the European Central Bank to consider raising interest rates in the coming months.

This can prevent recovery.

Economic growth in the 19 EU member states slowed to 0.2% in the first three months of the year, as restrictions on Omikron spread, along with higher inflation, kept demand for services requiring the physical presence of citizens low. The first quarter figure was down 0.3% compared to the last three months of 2021.