The European Union (EU) is threatened by a sharp rise in inflation in 2023, as prices skyrocket in the Baltic states in 2022. About author financial times.
Inflation in Europe has reached a level last seen a few decades ago. But rising prices in countries such as Estonia, Latvia and Lithuania have been an even bigger warning to the EU. In the summer of 2022, inflation in this region was above 20% and is still above 21%. This has become a kind of wake-up call for other EU countries, where inflation may remain high during the winter and spring as they continue to be impacted by rising energy prices.
Baltic experts said they were surprised that their Western counterparts were so calm amid the absence of protests and record inflation. According to analysts, inflation in the Baltic is also higher, as people in this region earn less on average than most European countries. That is, most of the profits are spent on core goods whose prices increase the most.
Analysts have calculated that inflation in Europe will be at least 8-9% in 2023. At the same time, even if energy prices do not rise to a record high, other commodities will continue to rise, significantly exceeding the figures of the European Central Bank by at least 2%.
26 December Experts from the Center for Economics and Business Studies (CEBR) declarationHe says the global economy will enter recession in 2023. A recession is likely to begin in the global economy due to rising interest rates in response to rising inflation.