Based on expectations in various key sectors of the EU economy, inflation is expected to increase across the Eurozone as a whole. This is due:
1) At the expected higher energy prices (please read the analysis entitled “What are the Factors that Increase Electricity Prices?”)
2) In the wider increase of all prices of commodities and food respectively (Please read for further information the analysis entitled “Food Prices are Constantly Rising”).
3) The rise in prices due to increased levels of demand at specific low levels supply after the gradual opening of economies that will lead to a drastic increase in inflation levels.
by Thanos S. Chonthrogiannis
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Producer price expectations are at record levels in both the US and the EU. Inflation is expected to stabilize at higher levels, which will force the ECB to raise its lending rates, dragging many companies into high economic shutdowns. indebted to the abyss of bankruptcy.
The higher imported inflation in the weak economies of the Eurozone member states undermines any economic recovery as it will reduce the levels of demand and consumption respectively reducing the disposable income of the citizens.
Any reduced production capacity of companies and supply chain disruptions may have to disappear in the next six (6) to twelve (12) months, but until then the highest prices will pass to the consumer with a high probability of remaining on a high basis.
This is an inevitable event, which is accelerating due to the constant rise in the price of oil and its derivatives.
