Euro-zone inflation rate over three times target rate

Tuesday, 06 June 2023 5:47 AM [ Last Update: Tuesday, 06 June 2023 5:54 AM ]

Markets full but pockets empty in Europe

At 6.1% in May Eurozone inflation remains more than three times its longtime target rate of 2%. This has been wreaking havoc on working class Europeans with food prices, for instance, currently 17% higher than a year ago.

Eurozone inflation 3 times target rate.

Eurozone inflation still 3 times above 2% target rate

Prices have been rising non-stop across Europe for almost two years now, and their latest data shows another huge drop in purchasing power.

I limit myself in all things, but vegetables, fruits and healthy food are important to me.

Health also has something to do with nutrition and if you can't pay for nutrition anymore, then I find that a bit horrifying.

French Housewife

European leaders like to blame Russia for the increase, but they seem to forget that Eurozone inflation was soaring long before the unrest in Ukraine which escalated in February 2022.

European inflation soared to 4% in September 2021.

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Many analysts are of the view that profit hoarding, speculation, and, price gouging, are the real culprits behind Europe's high prices.

Polls show that 96% of France agrees that some businesses are opportunistically taking advantage of the current inflation.

The ramifications and reasons for economic strife in Europe

The ramifications and reasons for economic strife in Europe

European countries are experiencing a wave of strikes and protests due to high energy prices, an unprecedented rise in living costs compounded by poor pay and working conditions as well as other government policies.

Of course, the war in Ukraine is a factor, but a factor at least equal to that has been financial speculation, which goes unchecked in free market capitalism.

Polls show that French poverty is rising and that more and more French people are regularly forced to go without food.

Alessandro Ardito, French Young Communists Movement

UK Supermarkets rationing fruit and vegetables.

UK Supermarkets rationing fruit and vegetables

Supermarket giants in the UK are now only allowing three tomatoes and other salad ingredients per customer.

Despite the economic turmoil COVID era assistance programs are ending across the West. France is ending its rate caps on household energy prices this month.

We're living in a time of socio political violence at home, war in Ukraine, and the exhaustion caused by the COVID era., however, the lack of faith in our political leaders and their free market policies is causing perhaps the most instability.

Alessandro Ardito, French Young Communists Movement

Economists say solutions exist such as price controls, the indexing of wages to prices, limits on corporate profits, and other mechanisms.

But Western liberal economics has historically refused such measures, despite their effectiveness for the average person.