Starting January 2021 the Harmonised Index of Consumer Prices* witnessed a constant increased both in the Euro area as well as in the United States.
The reasons for these increases were twofold:
Covid - 19: As Covid -19 pandemic eased, demand for goods and services increased, impacting the supply chain. Sectors particularly influenced by the shutdown (automotive and airlines) witnessed price hikes.
The war in Ukraine: In February 2022, Russia invaded Ukraine. This translated in energy price increases which in turn led to higher input costs to food, non-energy industrial goods and services.
Source: Eurostat
What do you think? Will this trend continue? Add your thoughts in the comments section below.
Note: *The Harmonised Index of Consumer Prices is used to measure consumer price inflation, or the change over time in the prices of consumer goods and services purchased by euro area households. It is “harmonised” because all the countries in the European Union follow the same methodology
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