Everyday items, durable goods and services today cost more than it was a year ago. That is what inflation means. Today for 1 euro we can by less than we could yesterday. It can cause difficulties for people in daily routine because, for example, they can buy less food for the same amount of money.
According to statistics portal statista.com, inflation rate in European Union was 9,1% in August of 2022.
Katrin Assenmacher, the head of the Monetary Policy Strategy Division at the European Central Bank asked if she could answer to some questions about this year inflation kindly referred to European Central Bank’s website and mentioned that there can be found a lot of information about inflation.
Many factors have an influence for higher energy and other goods prices. Oil, gas and electricity became more expensive all around the world while other products prices varies differently in different countries. According to information found on European Central Bank’s website, prices are going up faster than before, because of the main reasons like: economy’s fast reopening, higher energy prices that push up inflation. Also, the huge impact has the war in Ukraine and Covid-19 pandemic, reports www.cnbc.com. Due to it, demand in households increase and the supply chain is disrupted.
The biggest impact inflation has on those who are the most vulnerable in society, for example students. It is hard for students if they do not have any side incomes from parents or other relatives and have to work by themselves to pay for rent, food and other necessary expenses.
A bachelor of journalism student Evelina Povilavičiūtė from Lithuania said that she noticed the rice of prices comparing this year to last year. The prices of accommodation rent, public transport and some groceries rised. She mentioned ways that helps her to save money: „I like to plan my groceries list before going shopping, also I bring food products from my home city so I would not have to buy it at groceries store, also I look for discounts”. Evelina drinks coffee at home and do not buy it at the city center or university coffee shop anymore.
Eline Cruz is a bachelor student of law in Netherlands. She said that she notices difference of prices sometimes, but she does not experience a lot of difficulties yet, because she is working a lot so has more money than usually, otherwise she should have limit her resources. However she goes to the cheaper groceries store as “Lidle” instead of going to, for example, “Albert Heijn”. Also she pays attention to discounts, it helps her to do not overpay for goods. Eline also said: “I like to look for more sustainable and cheaper alternatives and avoid certain expenses” , all of that helps her to save money and feel less consequences of inflation.
According to a leading information services company website www.globaldata.com is provided information that by the end of 2022, the global inflation forecast is going to rise up to 7.5%.