Inflation

Brdo pri Kranju – The OECD recommends to Slovenia in its latest report to focus on high inflation in the short term and then accelerate reforms that would increase productivity, make growth more sustainable and address ageing. Absence of reforms is to put additional pressure on pensions, healthcare and the labour market.

Turkish inflation rose year-on-year in June to a 23-year high of 78.62%, its acceleration for the 13th consecutive month boosted by the weakness of the local currency (the Turkish lira) and the negative effects of Russia's military invasion of Ukraine, which are expressed in a continued strong increase in the prices of raw materials.

Inflation in Türkiye in June soared to an annual rate of 78.6 percent -- the highest in 24 years, according to official data released on July 4. 

The inflation rate reported by Türkiye's state statistics agency was the highest since January 1998.

Inflation had stood at 73.5 percent in May and at 15.0 percent at the start of last year.

Eurostat's inflation divs for both the Eurozone and Greece have set new records causing a veritable shock around the continent.

In particular, inflation in the eurozone was 8.6% in June from 8.1% in May, according to the preliminary data published today by the official statistical authority of the European Union.

The picture in Greece

Finding the right monetary policy response to tackle soaring inflation is an "art," European Central Bank President Christine Lagarde has said.

"It is not a science," Lagarde said on June 29 at a panel at the ECB's annual central banking conference in Portugal.
"What we are doing there is an element of art," she said.

Treasury and Finance Minister Nureddin Nebati has stated that public finance continues to be one of the strongest elements of the Turkish economy despite all the negative developments in the world, and that the government has never and will never compromise on fiscal discipline.

The mood among German consumers has reached an all-time low, according to a key survey published yesterday, as the war in Ukraine drives a painful wave of inflation.

The government will increase the salaries of active and retired civil servants more than the six-month inflation rate, Labor and Social Security Minister Vedat Bilgin has said.

"We will make an additional raise of social protection for public servants above the inflation rate," he said, adding that the increase will also include retired civil servants.

British retail sales by volume dropped in May as soaring inflation caused consumers to limit spending, especially on food, official data showed on June 24.

Sales fell 0.5 percent compared with a rise of 0.4 percent in April, the Office for National Statistics (ONS) said.
April's data was sharply revised lower after an initial estimate showed retail sales had jumped 1.4 percent.

That policy also envisaged that goods and services produced in the country would become cheaper abroad because of the fall in wages. China entered its development process with a similar policy.