Inflation in the Eurozone has increased from 8.9% in July to 9.1% as a result of soaring oil, gas, and food costs caused by the continuing conflict in Ukraine.
August is the ninth consecutive month in which inflation has increased in the Eurozone, reaching 9.1%. In July, the official rate of inflation was 8.9%. There are 19 nations that make up the Eurozone, including Germany, France, and Belgium.
This comes at a time when the European Union (EU) is experiencing a severe energy and gas crisis, partly due to the continuing war in Ukraine. Across the continent, costs for essentials such as food, gas, and energy have skyrocketed.
Over the last month, energy costs increased by the most, at an annual rate of 38.3%, while food, alcohol, and cigarettes all increased by over 10%.
According to the Organization for National Statistics, the United Kingdom’s inflation rate reached a 40-year high of 10.1% in July (ONS).
Estonia and the Netherlands both witnessed inflation jumps of 2% in August compared to July. Florian Glatz, an EU-based blockchain technology attorney, co-founder of the German Blockchain Association, and member of the EU Crypto Initiative said to Cointelegraph:
The economic security of middle- and low-income people in Europe is being eroded by inflation, which is a historic problem for the region.
Moreover, according to Glatz, the crypto business has been warning world governments that the present monetary and economic institutions “cannot withstand the problems at hand.”
Cryptocurrency is often seen as an inflation hedge by people who have already accepted it. However, for this to be successful, the crypto community must continue to advocate for widespread acceptance and correct implementation.
According to Glatz, the EU must become prominent in the digital economy in order to provide its citizens with a better financial future.