Jun 2, 2021
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Prices have risen at a record in Europe

Inflation in the eurozone climbed to a record high in two years after countries began lifting coronavirus restrictions. Bloomberg writes about it.

Consumer prices in May rose 2 percent on an annualized basis, beating economists’ forecasts. At the same time, delays in the supply of raw materials and components are holding back production growth, as a result of which companies cannot meet the growing demand.

While buying activity has grown at the fastest pace in nearly a quarter century, manufacturers have reduced inventories to their lowest level since November 2009. The European Central Bank (ECB) believes that the rise in prices is likely to be temporary. However, a number of experts are confident that there is a risk of further rise in prices for goods as the economy recovers.

In May, Russian President Vladimir Putin announced the aggravation of the situation with prices in Russia for socially significant products. According to him, this is happening “against the background of an unstable global environment.” The government is sure that one of the reasons for the rise in prices was the greed of individual manufacturers and retail chains.

The government began to regulate prices for certain categories of goods in December 2020. From the beginning of the year to May 24, consumer prices rose by 3.2 percent. According to the forecast of VTB experts, the cost of goods and services may increase by 5.3 percent by the end of the year.

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