Along with unusually warm temperatures, Europe is experiencing continuously rising consumer prices and worsening shortages with nearly empty shelves in supermarkets.
The warm autumn will definitely come to an end, while inflationary pressures will hardly ease. Experts at the International Monetary Fund foresee continued consumer price growth in Europe. The primary reason is natural gas shortages caused by a cut-off in Russian gas supplies. Although weather in the region has been warm for the past two months, and European states regularly replenish their storage tanks, winter is just around the corner.
“A complete shutoff of remaining Russian gas flows to Europe, combined with a cold winter, could result in gas shortages and rationing, giving rise to GDP losses of up to 3 percent in some Central and Eastern European economies, and yet another bout of inflation across the continent. They need to bring down inflation while helping vulnerable households and viable firms cope with the energy crisis,” IMF's European Department head Alfred Kammer said. “We project headline inflation at about 6% in advanced European economies and 12% in emerging economies in 2023,” he predicted.
