Inflation in Europe sets new record

The complicated development of the war situation in Ukraine is pushing commodity prices and inflation to the strongest increase in 40 years in the EU member states.

Buy and sell in a market in Nice, France. (Photo: Reuters)

Notably, recently, the European Statistics Agency recorded a new record of inflation in European member states in Southeast Europe.

According to the latest data of the European Statistics Agency, in May 2022, the inflation rate in Bulgaria has reached 13.4%, the highest among European Union member countries in the Southeast region. Europe and the 5th highest among the 27 EU member states.

Currently, France and Malta have the lowest inflation rates in the EU at 5.8%, followed by Finland at 7.1%. Meanwhile, the Baltic states with the highest annual inflation rates in the EU are Estonia 20.1%, Lithuania 18.5% and Latvia 16.8%.

Monthly statistical data from the European Statistics Agency also shows that Bulgaria's consumer price increase in May was 1.3%, the second highest in Southeast Europe, only after Slovenia at 2%. However, Slovenia has the lowest annual inflation rate in the region at 8.7%, 0.1 percentage point lower than the overall European Union average.

High inflation in European countries is causing concerns about stagflation, which means the economy is not growing and prices are increasing, mainly caused by soaring food prices, the disruption of the supply chain due to the pandemic, the impact of sanctions imposed between Russia and Western countries related to the war in Ukraine.