Since October 2022, 13 EU states have seen more inflation than the UK, according to Robert Kimbell, Technical Specialist Client Assets, with Bulgaria coming in sixth.
The ECB’s monetary policy over the past ten years has been the main contributor to European inflation. The issues associated with the conflict may have been the catalyst. However, even if the Russian invasion had not taken place, another reason would have sooner or later caused the developing inflation issue.
Since October 2022, Bulgaria’s inflation rate has been 17.6%. The price increase was primarily seen in transportation, power, and heating applications. The country’s inflation rate was additionally increased by food and alcoholic beverages. The economy also contracted in 2022 and is anticipated to do so again in 2024.
Inflation in Bulgaria was also significantly influenced by gas costs. Since Gazprom refused to supply Bulgaria with gas and oil due to Bulgaria’s criticism of Russia and its acts as an invasion, Bulgaria has been experiencing inflation in the energy industry.
The gas crisis has increased tensions between different EU countries and is the main factor driving up gas and power prices across the EU.
Every continent has experienced the war’s effects differently. The region most impacted by it is Europe. The fight has continued for nine months. EU invested significant sums of money in Ukraine’s defence against Russia.
In the years to come, it may lead to higher inflation. According to Focus Economics, the inflation rate increased from 17.7% in August to 18.7% in September. Since May 1998, the data for September showed the highest inflation rate.
The outcome was mainly brought on by increased food and non-alcoholic beverage prices. Price pressures for housing, water, electricity, gas, and other fuels increased more quickly.
The trend was upward, with annual average inflation coming in at 12.8% in September (compared to 11.7% in August). Harmonized inflation, meanwhile, increased from 15.0% in August to 15.6% in September.
The other countries in the EU whose inflation rate is higher than UK’s 11.1% are- Italy: 11.8%, Belgium: 12.3%, Netherlands: 14.3%, Slovakia: 14.9%, Romania: 15.3%, Bulgaria: 17.6%, Poland: 17.9%, Hungary: 21.1%, Latvia: 21.8%, Estonia: 22.5%, Lithuania: 23.6%