Soaring energy prices push Europe’s inflation to decade high

Follow us on Social Media

Social sharing
1000x563 cmsv2 b1bdf38b ef27 521f aaaf 743ce3390820 6117638

Annual inflation in the Euro area reached a 13-year high as oil and gas prices soared in September, the European Union statistics agency said on Friday

Inflation came in at 3.4%, up from 3.0% in August and the highest since 2008. The overall inflation level was boosted by a jolting 17.4% increase in energy prices.

Economists and central bankers say the jump in energy prices is temporary — but it has governments nonetheless scrambling to ease the pain of higher utility bills for households.

That hasn’t removed fears of prices spikes and gas shortages this winter due to an extremely tight market for natural gas. Natural gas traded at €94.46 per megawatt-hour in Europe on Friday, almost five times higher than at the start of this year.

Reasons include strong demand in Asia, less supply from Russia, and cold weather this past winter that left reserves depleted.

Higher prices for natural gas and electricity have spread concern among European governments, which are taking steps to limit rises in residential utility bills through subsidies and tax cuts. Natural gas is a key fuel for generating electricity, so higher gas prices mean costlier electricity bills.

Core inflation, which excludes volatile fuel and food, was more modest at 1.9%.

READ ALSO  NiMet Partners TVC On Weather And Climate Information Dissemination

Despite higher recent inflation readings, the European Central Bank has indicated it has no plans to tighten monetary policy in response. The central bank sees higher inflation as the result of transient factors such as supply bottlenecks and statistical comparisons to extremely low energy prices a year earlier during the depths of the pandemic recession.

The bank predicts inflation will recede next year, and ECB President Christine Lagarde has said it will not “overreact” by scaling back its support for the economy in order to counter inflation that is only temporary. The central bank’s staff projections foresee inflation of only 1.7% next year and 1.5% in 2023, short of the bank’s goal of 2% considered best for the economy.

The bank’s support measures include €1.85 trillion in bond purchases slated to run at least through March 2022, a step aimed at holding down market borrowing costs for companies.

Source

Leave your comment on this post

THE ROTTEN FISH: CAN OF WORMS OPENED OF APC & TINUBU'S GOVERNMENT OVER NIGERIA'S ECONOMIC DOWNTURN

WATCH THE CRITICAL ANALYSIS AND KNOW THE RESPONSIBLE PARTIES TO BLAME FOR NIGERIA'S ECONOMIC CHALLENGES, WHILE CITIZENS ENDURE SEVERE HARDSHIPS.

Watch this episode of ISSUES IN THE NEWS on 9News Nigeria featuring Peter Obi's Special Adviser, Dr Katch Ononuju, 9News Nigeria Publisher, Obinna Ejianya and Tinubu Support Group Leader, McHezekiah Eherechi

READ ALSO  NiMet Partners TVC On Weather And Climate Information Dissemination

The economic crisis and hardship in Nigeria are parts of the discussion.


Watch, leave your comments, and share to create more awareness on this issue.


#9NewsNigeria #Nigeria #issuesInTheNews #politics #tinubu THE ROTTEN FISH: CAN OF WORMS OPENED ...
DON'T FORGET TO SUBSCRIBE AND LEAVE YOUR COMMENTS FOR SUBSEQUENT UPDATES
#9newsnigeria #economia #economy #nigeria #government @9newsng
www.9newsng.com

Leave your comment

Click on the link below or Scan the QR Code to join the 9News Nigeria WhatsApp Channel

9News Nigeria Investigative Reports WhatsApp Channel
9News Nigeria Investigative Reports WhatsApp Channel
About 9News Nigeria 13358 Articles
9News Nigeria is Nigeria's favourite news source. For Authentic, Unbiased News on Politics, Business, Sports, Technology, Entertainment and Lifestyles, Health, Nollywood, Crime and Investigations, Family and Relationships, Inspirations .. and much more. For Latest News from Africa and around the world, 9News Nigeria is your best source. WhatsApp +2348115805632 Email: info@9newsng.com Facebook: www.facebook.com/9NewsNG | Twitter/Instagram: @9newsng

Be the first to comment

Leave a Reply