Winning Bizness Desk
Mumbai. If you think that there is an outbreak of inflation only in India, then just wait. There is an outcry due to inflation all over the world and after the Russo-Ukraine war, the situation has become very dire. There has been such a huge gap in supply and demand that the prices of many essential things are increasing continuously. India is also facing this crisis where inflation was recorded at 7.40 percent in September. Its rate has remained high for several months. Apart from India, the inflation rate is running above 10% in many countries of Europe. According to a report, inflation in 19 European countries that use the euro currency has reached a record level of 10.7 percent in October.
slowing down the pace of the economy
The skyrocketing prices of natural gas and electricity have also slowed down the pace of the economy. Oil prices have already come down, but due to some other factors, customers are not getting its benefits. Recently, the Organization of OPEC countries has said that they will reduce the supply of crude oil. After this announcement, the fear of rising oil prices has increased worldwide. On the other hand, Russia supplies most of the natural gas to European countries. But due to the war, there has been a big obstacle in this, due to which the prices of gases have reached the sky. There is a apprehension that the situation may worsen further. The European Union's (EU) statistics organization 'Eurostat' said that the inflation rate reached 10.7 percent this month compared to a year ago. Prior to this, inflation was 9.9 percent in September. This is the highest level of inflation in the Eurozone since 1997.
Euro currency used in 19 out of 28 countries
The euro currency is used in 19 of the 28 countries of the European Union. These are collectively called the Eurozone. Eurostat said the rise in natural gas prices due to the Russo-Ukraine war and the rise in electricity prices has contributed to the rise in inflation. With the increase in the expenditure on energy resources, the expenditure of consumers on other essential things has decreased. According to Eurostat, the prices of food, alcohol and tobacco products have increased by 13.1 percent, while the prices of energy resources have jumped 41.9 percent.
growth rate near zero
Meanwhile, the economies of European countries trying to recover from the ill effects of the Kovid-19 epidemic have achieved a growth rate of only 0.2 percent in the July-September quarter. Earlier, the growth rate in the April-June quarter was 0.8 percent. The European Central Bank said in an estimate last week that inflation could be 5.8 percent next year. In the estimate made three months ago, it was said to be 3.6 percent. High level of inflation is being seen in all parts of the world including Europe this year. In the US and UK, inflation has touched the highest level in the last 40 years.