Political attention across the EU is firmly focused on the impact of rising inflation on the cost of living. The argument that price growth is a temporary phenomenon has weakened further as eurozone inflation for January reached a record high of 5.1% – more than twice the ECB’s 2% target.
Soaring energy prices continue to fuel what is widely being billed as a “cost-of-living crisis”. Eurostat figures show annual inflation in energy to be running at 30% with natural gas prices up over 300% in the past year. It is a trend that shows no sign of easing with future markets indicating that higher energy prices will remain well into 2023.