EU - Inflation Reaches Record 8.1%

Arno Froese

Inflation in the eurozone has hit another record high, as the war in Ukraine stokes energy and food prices. Prices had already been increasing because of supply chain problems in the wake of the coronavirus pandemic.

Inflation in the 19 countries of the eurozone soared to 8.1% in May from 7.4% in April, figures showed, exceeding previous expectations. 

Prices have risen sharply in the past year, initially because of supply chain problems after the COVID pandemic but subsequently because of Russia’s invasion of Ukraine.

Energy prices jumped jumped by 39.2% as a result of a global energy crunch caused by the war. 

Food prices soared by 7.5%, while prices for other goods—such as clothing, appliances, cars, computers and books—were up 4.2% and the cost for services rose 3.5%.

Germany’s inflation rate reached 7.9% in May, according to data published by the German statistical agency Destatis.

Inflation in the eurozone—home to some 343 million people—is now at its highest since records for the currency began in 1997.

The latest figures mean headline inflation is now 4 times the ECB’s 2% target, and there are fears that the rapid rise in underlying prices could see inflation become embedded.

-www.dw.com, 31 May 2022

Arno's Commentary

In order to remedy the problem, governments the world over continue to use various means, including interest rate changes.

Why inflation? One word: coronavirus, which forced a deceleration in production. Thus, the old slogan, “Supply and demand determine the price,” becomes true once again. But, as mentioned, in the past it was mainly limited to certain sections of the world: Europe, America, Asia, Africa, etc. Today, it’s more unified.

Once again, we see the world coming closer together, as documented in Holy Scripture such as Revelation 18.

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

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