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A26 world news
Diasabra 21 Mei 2022
‘I can’t see the light’: War fuels surging prices in Europe

(AP) — Edoardo Ronzoni
inspects a construction
site near Milan that he shut
down in March as costs for
materials skyrocketed. He
can’t complete a half-built
roundabout at an inter-
section known for fender-
benders because asphalt,
cast-iron pipes and con-
crete are too expensive
— prices exacerbated by
Russia’s war in Ukraine.

Public works projects in Ita-
ly are grinding to a halt just
as the European Union is
injecting 108 billion euros
($114 billion) in pandemic
recovery money meant to
launch a construction frenzy.

Ronzoni laments that his
company has already lost its
three busiest months and
expects the worst is ahead:
“We fear we won’t be able
to work this year. We are
closing all of our sites.”
The war has accelerated in-

Prices in April rose 14.2% in ten some relief on diesel
the Czech Republic, 12.3% in prices thanks to government
Poland and 10.8% in Greece. emergency measures, includ-
They’re an eye-popping 61% ing a small rebate and per-
in Turkey, which saw its cur- mission to pass along higher
rency lose 44% of its value fuel costs to customers.
against the dollar last year.
Still, the burden is high.
Shop workers from War- Óscar Baños, who drives
saw to Istanbul say custom- his own cargo trailer out of
ers are cutting back, buying the central Spanish town
lower-priced items, giving of Palencia, said tires have
up on niceties like fresh- risen from 400 to 500 euros,
cut flowers and items they a new truck cab is up from
can delay, like new clothes. 100,000 to 120,000 euros,
and a liter of diesel has risen
In the Turkish capital, butch- from 1.20 to 1.90 euros in the
er Bayram Koza said he has past year. That’s the equiva-
seen a 20% drop in sales after lent of a gallon of gasoline
prices nearly doubled, largely rising from $4.80 to $7.60.
due to the cost of feed. That
paralyze ground transport of
flation across Europe and goods. Bread prices are soar- Economists are calling it a is making livestock breed- Europe’s auto market also is
the world, with prices for ing from Poland to Belgium. perfect storm, striking as ing unprofitable, and many facing price hikes as factory
energy, materials and food Protests over price hikes have countries unleashed spend- farmers are selling and shutdowns in Ukraine, sanc-
surging at rates not seen erupted in places like Bul- ing to spur an economic moving to the city, he said. tions on Russia and an existing
for decades. It’s causing garia. While governments rebound from the CO- global semiconductor short-
sticker shock at the grocery have responded with tax VID-19 pandemic. Surg- On the Greek island of age crimp supplies of com-
store, gas pumps, electricity cuts and other aid, they face ing customer demand over- Rhodes, fish restaurant ponents needed to make cars.
bills and construction sites. limits in easing the impact whelmed factories, ports and owner Paris Parasos gets up
at dawn to go out on fishing As a result, average new car
of volatile energy markets. freight yards, with resulting
Soaring oil and gas prices shortages driving up prices. trips to keep costs down. But prices in Europe are expected
are the key driver of infla- Even the thrifty, with back- he has still had to raise prices to rise $500 to $2,000 this
tion in Europe, which is yard hens, are wondering Add to that: The war in at his restaurant in the is- year, according to Nishant
heavily reliant on Russian if the price of feed is worth Ukraine has blocked ex- land’s main town as cooking Mishra, associate director
energy to generate electric- the eggs they yield. Alina ports of raw materials like oil prices quadrupled. Plus, of investment research at
ity and power industry. Infla- Czernik, a shop assistant steel and minerals that kept cooking gas and electricity Acuity Knowledge Partners.
tion is expected to hit nearly in Warsaw, does the math, western Europe humming, bills are three times higher.
7% this year in the 27-na- as she sees prices of grain as well as commodities like Back in Milan, the round-
tion EU and is contributing for her hen go up 150%, grains and seed oil, accen- In Poland, bread prices are up about is just one of half a
to slowing growth forecasts. to 200 zlotys ($45) per 100 tuating global shortages. 30%, sending shoppers to dis- dozen non-EU-funded sites
Ronzoni has had to close
kilograms (220 pounds). count outlets. Bakers in Bel-
Fishmongers and farmers are Inflation is running especial- gium are laying off workers, in recent months. He finds
being forced to charge prices It is spreading a sense ly hot in central and Eastern as prices for a loaf rise by 30 himself unable to deliver the
for their catch and crops that of futility, especially for European countries nearest cents, to 2.70 euros ($2.85). work at the contracted prices.
even they see as astronomical. those with low incomes. the battlefields of Ukraine.
High fuel prices threaten to In Spain, truckers have got-