Inflation in Germany jumped to a record level since 2008. According to Bloomberg, consumer prices in the country rose by 3.4 percent in August. This indicator greatly exceeds the planned two percent established by the European Central Bank for the Eurozone.
Inflation in Spain also reached a maximum and amounted to 3.3 percent. Plans for price stability were violated by the jump rate of energy and supplies problems.
So far, politicians argued that the current growth of inflation is temporary. However, the reduction in deliveries encourages more and more companies to increase the cost of goods and services, and this trend can lead to a permanent increase in prices.
However, the growth of the value of imported goods in Germany was 15 percent in annual terms. This is the highest rate for four decades. With actively growing prices for imports, enterprises are becoming heavier to provide raw materials. Inflationary expectations in the euro zone also reached a record level in industry such as industry, trade and construction.
Rising prices for goods for the most part is due to interruptions in chains of supplies caused by numerous locomotives and restrictions on movement due to coronavirus. The cost of products rises around the world, and sellers complain about empty shelves. Another important factor that caused such strong inflation in Europe is growing energy prices. The cost of electricity futures has reached a historic maximum this winter. The reason for such a sharp jump was the reduction of gas supplies from Russia.