{"id":14183,"date":"2023-06-01T14:53:32","date_gmt":"2023-06-01T14:53:32","guid":{"rendered":"https:\/\/daric-persian.com\/?p=14183"},"modified":"2023-06-01T14:58:28","modified_gmt":"2023-06-01T14:58:28","slug":"inflation-in-europe-falls-to-6-1-but-consumers-are-still-reeling-from-cost-of-living-crisis","status":"publish","type":"post","link":"https:\/\/daric-persian.com\/?p=14183","title":{"rendered":"Inflation in Europe falls to 6.1%, but consumers are still reeling from cost-of-living crisis"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\">Inflation in Europe falls to 6.1%, but consumers are still reeling from cost-of-living crisis<\/h1>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/articles\/stories\/07\/64\/54\/08\/320x180_cmsv2_30f7ba13-ff1a-5f68-9d38-65f5cbfe5b97-7645408.jpg\" alt=\"FILE - A customer pays for fish at the Maravillas market in Madrid, on May 12, 2022. Europe's painful inflation inched higher last month, extending the squeeze on households \" title=\"FILE - A customer pays for fish at the Maravillas market in Madrid, on May 12, 2022. Europe's painful inflation inched higher last month, extending the squeeze on households \"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><em>FILE &#8211; A customer pays for fish at the Maravillas market in Madrid, on May 12, 2022. Europe&#8217;s painful inflation inched higher last month, extending the squeeze on households&nbsp;<\/em>&nbsp;&nbsp;&#8211;&nbsp;&nbsp;Copyright&nbsp; Manu Fernandez\/Manu Fernandez<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Inflation in Europe has dropped to 6.1%, but some experts warn that consumers won&#8217;t immediately see a difference on market shelves.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Europe&#8217;s inflation rate took a positive turn with a significant drop to 6.1%, but consumers are yet to see real relief in what they pay for food and other necessities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The annual figure in May eased from 7% in April for the 20 countries that use the euro currency, the European Union\u2019s statistical agency Eurostat said Thursday.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Inflation in Germany, France and Italy &#8211; the three largest economies to use the currency &#8211; fell by 6.1%, 5.1% and 7.6% respectively.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It was a welcome sign that the explosion in price increases \u2013 which peaked in record double digits last October \u2013 is heading in the right direction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But economists warned that it will be many months before disgruntled consumers see more normal levels of inflation reflected on price tags in shops.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Food prices in the eurozone rose by a painful 12.5% in May from a year earlier but still eased from the 13.5% increase recorded in April.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Key to the lower overall inflation figure was energy prices, which fell 1.7% from a year ago following an increase of 2.4% a month ago.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Core inflation, which excludes volatile food and energy, fell to 5.3% from 5.6% in April. That figure is seen as the better indication of price pressures in the economy from demand for goods and higher wages.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s high enough that the European Central Bank is expected to approve another interest rate increase at its 15 June meeting.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Inflation took off in mid-2021 when initial fears of Russia&#8217;s full-scale invasion of Ukraine caused&nbsp;natural gas and oil prices to spike due in part because of worried that there would be a drop in supplies. A situation that came as the global economy bounced back from the worst of the COVID-19 pandemic, straining supplies of parts and materials.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/articles\/stories\/07\/64\/54\/06\/808x569_cmsv2_e6b98bb6-e289-5ff2-8159-611686332796-7645406.jpg\" alt=\"Michael Probst\/Copyright 2023 The AP. All rights reserved\"\/><figcaption class=\"wp-element-caption\"><em>Containers are piled up at the cargo container terminal in Frankfurt, Germany, Wednesday, May 31, 2023<\/em>Michael Probst\/Copyright 2023 The AP. All rights reserved<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Germany, which is in recession, has tried to cushion the blow of high energy prices with subsidies for households and businesses and discounted public transit tickets.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That partly helped stem rising energy costs, but the cost of food in the country is still surging.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The eurozone dodged recession in the early months of the year, thanks largely to governments scrambling to line up non-Russian sources of natural gas to avoid an energy catastrophe.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The economy grew only 0.1% in the first three months of the year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Also weighing on economic growth are rapid interest rate hikes from the European Central Bank as it tries to wrestle inflation toward its target rate of 2%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Higher interest rates influence the cost of borrowing across the economy, making it more expensive to get a mortgage to buy a house or a business investment loan \u2013 in turn, reducing demand for goods that drives inflation higher.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Inflation in Europe falls to 6.1%, but consumers are still reeling from cost-of-living crisis FILE &#8211; A customer pays for<\/p>\n","protected":false},"author":5,"featured_media":14185,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[88],"tags":[],"class_list":["post-14183","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-88"],"_links":{"self":[{"href":"https:\/\/daric-persian.com\/index.php?rest_route=\/wp\/v2\/posts\/14183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/daric-persian.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/daric-persian.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/daric-persian.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/daric-persian.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14183"}],"version-history":[{"count":2,"href":"https:\/\/daric-persian.com\/index.php?rest_route=\/wp\/v2\/posts\/14183\/revisions"}],"predecessor-version":[{"id":14186,"href":"https:\/\/daric-persian.com\/index.php?rest_route=\/wp\/v2\/posts\/14183\/revisions\/14186"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/daric-persian.com\/index.php?rest_route=\/wp\/v2\/media\/14185"}],"wp:attachment":[{"href":"https:\/\/daric-persian.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/daric-persian.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/daric-persian.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}