Prosperity and living standards are threatened by the significant rise in prices in Western Europe, which falls short of adjusting salaries. The downward flight of the purchasing power of wages continues, the inflation of the Eurozone reached a new record against expectations due to the almost forty percent increase in overhead costs.

The explosive rise in energy and food prices and high inflation in Western Europe are causing increasing social tension. According to the latest data from Eurostat, the price increase that had been going on for more than half a year continued to accelerate in May: according to data from the EU statistical office

inflation in the euro zone set another record. In 19 countries, consumer prices increased by 8.1 percent in May, even though experts expected that the May figure would no longer significantly exceed April's 7.4 percent inflation.

Inflation in the euro area, which is considered exceptionally high, is still the effect of rising energy prices. In May, overhead costs were 39.7 percent more expensive than a year earlier.

High inflation causes a serious decrease in real earnings, as the increase in wages has lagged behind even in those member states where there are automatic mechanisms for this.

The European Central Bank (ECB) is warning the member states of the eurozone against giving in to pressure from workers and implementing more significant wage increases. The ECB continues to expect that inflation will moderate in the medium term and that the rate of price increase will normalize at a level of around two percent. increase in gross earnings should not exceed three percent.

At the same time, employees see their own situation differently. Average earnings in the euro area rose by only 2.8 percent on average, while the price of energy and fuel in some countries increased by 100 percent, i.e. doubled.

People's serious livelihood problems are well illustrated by the fact that public sector unions organized a national strike

The full article of Magyar Nemzet can be read here.

Author: Kristóf Nagy

Image: Pixabay