According to Brussels-based experts, the energy crisis will continue to drive prices higher. Bruegel
Maria Demertzis, the deputy director of Brussels-based think tank Bruegel, predicts that the cost-of-living problem will grow across the European Union, accompanied by rising costs for food, fuel, and energy.
She claimed on Thursday on Euronews that the reason for the anomalous inflation is the increasing cost of energy, which "is impacting Europe a lot more than it has affected the US since we depend on Russia a lot more than others."
When asked if Europeans should prepare for rising prices, Demertzis responded, "I believe so. In terms of the inflation being abnormal, I believe we will most definitely experience this for another year.
"We have witnessed a rise in the price of flour here in Belgium, where I currently reside, which has had an impact on the price of bread, [which is] very significant.
"When we buy our weekly groceries and fill up our cars with gas, we'll notice it in our wallets. And I'd venture to say that before things improve, they probably need to get a little worse first. So, in that regard, I believe we should prepare for a little bit more of this.
The EU has increased inflation expectations while lowering its prediction for economic growth. This year's real GDP growth in the EU and the euro area is now anticipated to be 2.7%, down from the previously predicted rate of 4%. Next year, growth is predicted to slow down even more, to 2.3 percent.
In the meantime, inflation, which was formerly predicted to reach 3.9 percent, is now projected to average 6.8 percent.