Inflation in Europe reached a record 7.5% in March as prices for oil and natural gas spiked higher following Russia’s invasion of Ukraine.
The preliminary inflation data from Europe’s statistics office, Eurostat, has raised questions about how the European Central Bank (ECB) can stabilize such rapidly rising consumer prices. Some economists are now saying that the Euro zone will enter a recession later this year.
The European Union (EU) has taken unprecedented measures to punish Russia for its decision to invade Ukraine — such as blocking the sale of luxury goods — and these sanctions are also having repercussions on the Euro zone economy.
Brent crude oil, the international benchmark, hit its highest level since 2014 after Russia’s invasion of Ukraine, pushing prices up across Europe. Countries such as Germany rely on Russia for 40% of their energy needs.
Brent crude oil is currently trading at $105.00 U.S. per barrel but has been as high as $130 U.S. a barrel in recent weeks.
