A Millions of Europeans find it increasingly difficult to make it not just to the end of the month but to the middle of the month. Countries like Germany, which proudly displayed macroeconomic figures a few months ago, are now headed towards the feared recession almost without remedy. Everything is expensive and scarce… and the accounts no longer add up.
“Sometimes when I go shopping… for example, there is usually a shortage of oil and it’s really silly to have to buy more expensive products, because I really don’t have a lot of money.”
“I try to save money on my other daily expenses, for example by canceling my internet subscription. Or I could move to a cheaper flat, I’ve thought about it.”
They are painful decisions that go around many heads and that Eurostat confirms with data.
Last September, inflation accelerated in Europe: up to almost 10% per year and 9.9% per year in the Eurozone (compared to 9.1% in August).
Germany came close to 11%.
The Baltic republics exceed 20%.
France (6.2%), Malta (7.4%) and Finland (8.4%) are at the bottom.
Once again, energy was by far the largest contributor to the increase in the inflation rate, followed by food, alcoholic beverages and tobacco.
In this context, given the prospect of further increases in interest rates to combat inflation, the euro has fallen again against the dollar, and the ECB’s measures may intensify the economic slowdown.
