Inflation scales record heights in European countries due to Russia-Ukrai

Brussels: It has been exposed that the inflation has flared up to record levels in the European countries against the background of the Russia-Ukraine conflict. In April, the inflation rate was recorded at 7.5% in the Eurozone, a part of the European Union. This is a record for the last 25 years. It has been exposed that the increased rate of fuels is the main cause of this inflation. Eurostat informed that there has also been a decline in the economic growth rate of the Eurozone.

The group of 19 countries using the Euro as their currency is the Eurozone. Before the Russia-Ukraine conflict, the Coronavirus pandemic and the resultant disruptions in the global supply chain had hit the European countries. The European financial institutions and analysts had indicated that the inflation will come under control and the economy will gain speed after the end of the Coronavirus pandemic. But the European equations seem to have been shattered by the Ukraine conflict, which started at the end of February.

The increasing fuel rates are the main reason behind the inflation flaring up. The fuel prices in Europe increased by 38% since the start of the Ukraine conflict. This increase has hit nearly all the sectors. The rates for most items, including travel, transport, food grain imports, have increased tremendously. Analysts warned that along with the Ukraine conflict, the Corona outbreak in China and the subsequent lockdowns also are hitting the European countries.

Experts have warned that the European economy could slip into recession given the record inflation levels. The European economy had grown by 0.3% in the last quarter of 2021. In the first quarter of 2022, the growth rate declined by 0.1% to settle at 0.2%. Looking at the situation of the Russia-Ukraine conflict, there is no possibility of any reduction in fuel prices and other commodities. Therefore, the inflation flare-up may continue for the next few months. The financial institute Capital Economics has predicted that in that situation, the economy of the Eurozone will be hit by the recession.