Inflation

Several French cities have begun handing out food vouchers to the population to compensate for increasing prices, the TV channel France 2 reported on Monday.

According to the report, citizens are being given coupons for €5, €20 and €30. To date, city administrations have reportedly spent about €37 million (around $40 million) on the issuance of coupons and certificates, as well as other measures to support the population.

A document outlining the subsidies has not yet been adopted. However, the mayor offices of some French cities have decided to introduce food coupons on their own, without waiting for an official government decision.

www.rt.com/business/556086-france-handing-out-food-stamps

Drivers with foreign license plates can no longer buy gas in Hungary at government-capped prices – the lowest in the EU, Budapest announced on Thursday. Prime Minister Viktor Orban's chief of staff said the measure is aimed at stopping "petrol tourists" abusing Hungary’s fuel supplies.

Gergely Gulyas told journalists, during a regular press briefing, that “foreign buyers are exploiting the fact that Hungary is able to maintain petrol prices at 480 forints (€1.22) per liter, while they are at 700-900 forints elsewhere in Europe.”

According to the official, “abuse” of the low gas prices by fuel tourists has become a real issue of late, threatening his country’s own supply.

The decision means that motorists with foreign license plates are now charged higher market prices at Hungarian gas stations.

Viktor Orban’s government originally introduced the gas price cap on November 15, 2021 amid accelerating inflation. Budapest has since extended the scheme several times, with the latest coming in late April.

Along with gas, similar price caps were introduced in Hungary for some staples, like flour and sugar.

www.rt.com/news/556176-hungary-foreign-motorists-banned-cheap-gas

The German statistics office Destatis has reported another jump in inflation in May as food and energy prices continue to climb. Annual inflation in Europe’s top economy has reached 7.9%, the highest level since the 1973 oil crisis.

The surge comes amid the conflict in Ukraine and the unprecedented sanctions imposed on Russia. Soaring energy prices have had a considerable impact on inflation since late February, when Russia’s military operation in Ukraine began, Destatis said on Monday.

“Another factor with an upward effect on prices is interruptions in supply chains caused by the Covid-19 pandemic,” the agency said.

Energy prices reportedly rose 38.3% in May year-on-year, while food prices posted an 11.1% leap.
Consumer prices in May increased 0.9% by national standards and 1.1% by EU-harmonized standards, according to the data. Destatis is expected to publish its final results for the month on June 14.

www.rt.com/business/556351-germany-rising-inflation-crisis

For the next three months, Germans will be able to travel the country for just €9 (£7.50; $9.50) a month in a drive to tackle the soaring cost of living.

All local and regional transport on trains, buses and metro is included in the government's initiative, although inter-city trains are not.

The cheap tickets are also aimed at getting people to leave their cars.

However, fuel tax has also been reduced by around 30 cents a litre for petrol, bringing prices down below €2.

The tax has been brought down to the EU minimum, again for the next three months, so diesel prices are also being cut by around 14 cents a litre.

Transport Minister Volker Wissing has described the €9-a-month tickets as a great opportunity: "It's a success that we've already sold seven million tickets."

However, rail company Deutsche Bahn is already struggling with overcrowding, delays and cancellations and the prospect of millions of extra passengers has prompted criticism of the plan.

www.bbc.com/news/world-europe-61656639

In the United States, people are complaining about the fuel cost of $5 a gallon. In Europe, they sell it by the liter. In Europe, when on par with the United States, one gallon is now running for $10 a gallon. With the model projecting that we can see oil run-up to over $200 in 2023, we are looking at crazy times in energy which will come back as civil unrest.

www.armstrongeconomics.com/markets-by-sector/energy/beware-of-fuel-theft

The United States may have to endure economic “pain” in order to rein in rampant inflation, the head of the International Monetary Fund (IMF) said on Friday, noting that a downturn might be the “necessary price to pay” for recovery.

Speaking to reporters during a Friday press conference, IMF Managing Director Kristalina Georgieva predicted a rough ride for the US economy, which is experiencing decades-high inflation with soaring prices for a number of staple goods.

“Success over time [in lowering prices] will be beneficial for global growth, but some pain to get to that success can be a necessary price to pay,” she said, soon after the IMF slashed its growth forecast for the US by nearly a full percentage point, down to 2.9%.

US makes confession about skyrocketing food and energy pricesREAD MORE: US makes confession about skyrocketing food and energy prices
Georgieva added that the United States faces a “narrowing path to avoiding a recession,” but that tackling inflation must be the “top priority,” even if it means an economic slow-down.

www.rt.com/business/557785-imf-us-inflation-pain-price