Eurozone Consumer Prices Up 9.9% YoY... "Highest Inflation Rate Ever"
Unprecedented Price Hikes Spark Protests Across Europe
On the 18th (local time), police in Paris arrested participants in a nationwide strike called by French labor unions protesting rising prices and demanding wage improvements. [Image source=Yonhap News]
[Asia Economy Reporter Yoon Seul-gi] As unprecedented inflation continues in Europe, public dissatisfaction is growing. Large-scale protests demanding wage increases and other measures are erupting across Europe.
According to AFP and others, the European Union (EU) statistical office announced on the 19th that the Consumer Price Index (CPI) in September rose 9.9% compared to the same month last year. This is a 1.2% increase from August and the highest inflation rate recorded since the statistics began. The rise in energy prices was the main driver of inflation in the Eurozone. The increase in energy prices accounted for 4.19 percentage points, followed by food at 2.47 percentage points, and services at 1.80 percentage points.
As high inflation persists, large-scale protests have erupted, reflecting growing dissatisfaction among European citizens. According to the Wall Street Journal (WSJ) on the 18th (local time), more than 100,000 people took to the streets in France demanding wage increases in response to rising energy bills and inflation.
Earlier, oil industry workers demanded wage hikes, arguing that energy companies made windfall profits due to the surge in energy prices caused by the Russia-Ukraine war. Currently, the French General Confederation of Labour (CGT) union is rejecting a 7% wage increase agreement and is leading strikes demanding a 10% wage increase.
With protests entering their third week, their scale has grown. As strikes continue, about one-third of gas stations nationwide are experiencing severe supply issues, worsening the energy shortage. Consequently, the French oil workers' strike has spread to other sectors such as public transportation and education.
On the 7th (local time), dozens of vehicles lined up waiting for fuel in Paris, France. [Image source=Yonhap News]
Similar protests are occurring across Europe due to the impact of inflation. Last month, thousands held rallies in Prague, the capital of the Czech Republic, partially protesting high energy prices, while airline workers in Germany and Sweden began strikes demanding higher wages.
In the UK, strikes have been launched by workers ranging from nurses to railway employees demanding wage increases. The UK's largest union, the public sector union Unison, will start strike ballots from the 27th for 406,000 National Health Service (NHS) union members in England, Wales, and Northern Ireland.
Regarding this situation, the Financial Times (FT) analyzed on the 17th that it is "part of the UK's transition into a 'season of discontent'." The "season of discontent" is a term likening it to the "winter of discontent," referring to the period from November 1978 to February 1979 when the government introduced wage increase caps to curb inflation, leading to large-scale strikes by workers in protest.
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