Inflation in the euro zone rose to a two-year high after countries began lifting coronavirus restrictions.
Consumer prices rose two percent year-over-year in May, exceeding economists’ forecasts. At the same time, delays in the supply of raw materials and components are holding back production growth, leaving companies unable to meet rising demand.
While buying activity rose at the fastest pace in nearly a quarter century, manufacturers have reduced inventories to their lowest levels since November 2009. The European Central Bank (ECB) believes the rise in prices is likely to be temporary. However, a number of experts believe that there is a risk of further price hikes as the economy recovers.
In May, Russian President Vladimir Putin said the situation with the prices of socially important products in Russia had worsened. According to him, this is happening “against the background of unstable global conjuncture. The government believes that one of the reasons for the rise in prices was the greed of individual producers and retail chains.
The government began to regulate prices for certain categories of goods in December 2020. Since the beginning of the year, consumer prices have increased by 3.2 percent by May 24. According to the forecast of VTB experts, the cost of goods and services may increase by up to 5.3 percent by the end of the year.