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EU INFLATION HITS 11.5%

November 28, 2022

EU inflation hits 11.5% annually in October, according to the latest data by Eurostat, the statistical office of the European Union (EU).

Meanwhile, the annual inflation for the euro zone reached 10.6%.

Some of the lowest rates were seen in France and Spain, with inflation at just above 7%.

However, other countries are enduring much higher rates, such as the Netherlands at 16.2%.

The high inflation rates in Europe increase the chance of more contractionary monetary measures and slower growth next year.

While demand for the polymer industry looks set to remain subdued next year, some positive dynamics were emerging.

For instance, crude oil prices were decreasing mainly due to unrest in China. At the same time, gas prices were high but stable at around €120/MWh.

The stable or lower energy prices if sustained will help ease or even slow down inflation.

What is more, the lower overall demand seen during the past few months and a plunge freight costs should also start to ease the pressure on inflation.

Heightened uncertainty will most certainly characterize the polymer industry in the next few months.

However, some signs are emerging that would suggest the market may have reached or is near the worst point.

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