INFLATION AND RAPID GROWTH OF FUEL AND FOOD PIECES IN EUROPE

On 10/06/2022 founder of “Linnikov & Partners” commented on the relationship between the price of fuel and food prices in Europe for the viewers of economic news on RUSSIA-24. Since the beginning of the “Ukrainian crisis” and introduction of economic sanctions against Russia by the EU, UK and the US, inflation in the Eurozone keeps beating all previous records, approaching 10%, while restrictions on the import of Russian oil cause a rapid increase of fuel prices and, as a consequence, of other goods.
“I consistently emphasise that impulsive and poorly conceived actions of European politicians have a pronounced adverse effect on economies if EU member-states themselves, not to mention ordinary citizens of the European Union. The oil embargo and restrictions on import of Russian grain will, probably, generate particularly detrimental consequences. Peaking oil prices cause the “domino effect” that leads to rapid increase in prices of all consumer goods, including agricultural products. Exclusion of substantial volumes of Russian grain from the market will very soon resonate in excessive prices and deficit of the seemingly simplest and usual for the European consumer alimentary goods”, — says Alexander Linnikov.