
Private savings, not monetary pumping, will boost economic growth
In Latvia, inflation was on the rise in June (+19.3% YoY). Businesses transferred the cost increase to the prices and made consumers pay for it.
In Latvia, inflation was on the rise in June (+19.3% YoY). Businesses transferred the cost increase to the prices and made consumers pay for it.
Upward pressure from commodity prices continues and symptoms of a marked economic slowdown are visible in the construction industry.
In May, inflation in Estonia touched 20% over the year, with higher energy costs being passed through to the prices of goods and services.
In Q1 employment in Estonia rose by 5.1% YoY, giving hope on the ability to absorb the shock of a fiscal and monetary tightening.
In Poland, second-round effects thrive in an environment of expansionary fiscal policy, buoyant wages growth, and consumption boom.
In Latvia, inflation projections for 2022 and 2023 have been revised upwards. The uptrend in prices is driven by several factors, mainly political.
Lithuania’s Independence, a so-called Floating Storage Regasification Unit, offers a case study for those looking to pivot away from Russian gas.
The Bank of Poland takes its main rate to 4.5%, projecting 6.5% this year and 7.5% in 2023. Meanwhile, companies are passing higher costs on to CPI.
As coal has the biggest potential to lower gas demand, Poland wants to use it to produce electricity after 2049 to bolster its energy security.
The conflict in Ukraine has created another excuse to blame inflation on oil and natural gas, rather than the increase in the money supply.