OCU Urges Swift Government Action to Counter June Inflation Surge

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A state of alarm is spreading among consumers as the latest data shows a sharp jump in inflation. The advance indicator for June confirms a Consumer Price Index (CPI) that marks inflation at 10.2 percent, the highest level seen in 37 years. Fuel and food prices led the upwards surge, underscoring how daily essentials hit households hardest. In response, the Consumers and Users Organization (OCU) urged the Government to implement immediate and decisive actions to curb price growth and protect the purchasing power of the most vulnerable groups. According to the OCU, step changes such as a temporary halt to energy-related taxes, a reduction of value-added tax on food, and broader direct assistance programs are essential to offset the cost pressures that families face and prevent a further erosion of household budgets [OCU report].

The OCU advocates for stronger and faster measures to halt what it describes as an inflationary spiral that is squeezing consumer purchasing power. The 10.2 percent rise is the most pronounced in 37 years and draws particular attention to spikes in fuel, food, and the hospitality sector. The organization highlights that inflation likely has more persistent drivers beyond temporary shocks, noting that underlying pressures could keep prices elevated for longer than expected while costs such as rents, services, and essentials continue to rise [OCU analysis].

The OCU points to energy price increases since the previous summer, intensified by the ongoing conflict in Ukraine, as a key contributor to the broad price surge. It cites a substantial impact on households with electricity costs rising markedly and transport fuels showing double-digit year-on-year gains, alongside noticeable increases in groceries and everyday goods. Even sectors like hotels and restaurants have seen price accelerations just ahead of the peak summer travel period, emphasizing how a wide range of consumer services are affected by the inflationary context [OCU data].

To counter these pressures, the OCU reiterates the call for a temporary suspension of energy taxes and a temporary reduction of VAT on food, arguing that these measures are the most direct way to ease bills that households pay every month. It also notes the need for expanded and faster access to targeted aid, ensuring that more families qualify for relief during the price spike and its knock-on effects on living costs [OCU statement].

Finally, the organization urges the Government to increase the latest aid package to 500 euros and to broaden eligibility criteria so more households can access support before the summer budget period ends. This approach, the OCU argues, would provide timely relief while policymakers assess longer-term strategies to stabilize prices and strengthen consumer confidence in the face of ongoing global economic volatility [OCU recommendation].

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