Inflation Data of Europe: First the Corona epidemic and now the Russo-Ukraine war has increased the difficulties for the European countries. Inflation is wreaking havoc in the 19 countries that come in the Eurozone. For the first time, the inflation rate in European countries has crossed 10% (Inflation in Europe). Due to this, the possibility of economic slowdown in this area has increased further.
According to the Euro State data released on Friday, the Consumer Price Index in European countries for the first time in September went in double digits i.e. beyond 10%. On the other hand, in the month of August, the inflation rate in Europe was 9.1%. Earlier it was being estimated that the inflation rate would be around 9.7% in the month of September, but it has crossed 10%.
According to the report published in Bloomberg, this inflation rate is much higher than the estimates of experts. This is the fifth consecutive month that the inflation rate in European countries has turned out to be higher than expected. Due to rising inflation, the lives of the common people have been badly affected and now the pressure on the Central Bank to increase the interest rates has increased a lot.
Bad effect on the lives of common people
According to Euro State data, the biggest reason for rising inflation is the increase in the prices of food items in European countries. Along with this, there is also an increase in energy prices. In the month of August, gas prices in Europe had increased by 38.6%.
At the same time, it has increased by 40.8% in the month of September. Along with this, an increase of 11.8% has been registered in the price of food, alcohol and tobacco. Experts believe that in the coming times, problems for Europe may increase with the onset of winter. The effect of the conflict with Russia can be clearly seen on the gas supply.
European Central Bank may increase interest rate
In the European country of Lithuania, all inflation records have been broken. Here the inflation rate has crossed 22%. On the other hand, in Germany, the inflation rate has reached 10.9% in September. Till last month, the Consumer Price Index in Germany was 8.8%. In such a situation, the concern about inflation in European countries can be clearly seen.
In order to control inflation, there can be a big increase in interest rates in the meeting of the European Central Banks. With this, the Central Bank of England can once again increase its interest rates by 0.75%. It can also have an impact on European stock markets. Inflation has increased up to 80% in Argentina, a South American country.
Worse than inflation in America too
Apart from Europe, there has been an outcry due to inflation in America as well. Inflation in the country has broken the record of the last 40 years. In such a situation, in order to control the inflation rate of the country, the US Federal Reserve has decided to increase its interest rates by taking a big decision. The Federal Reserve has increased interest rates by 0.75%. After this it has reached between 3 to 3.25%.
It is worth noting that the interest rate is the highest ever since the recession of 2008. In the US too, the inflation rate is 8%. Talking about India, inflation is breaking the back of common people here too. At present, the retail inflation rate in India was above 7% (Inflation in India). To control the rising inflation in the country yesterday, the Reserve Bank has increased the repo rate by 0.50% for the fourth time in a row.