Inflation fuelled by energy and food prices

Across Europe, living prices have been rising, putting pressure especially on low-income households.  This debate is particularly urgent in Central and Eastern Europe, which has experienced the highest overall inflation rates and increases in consumer prices. Slovakia serves as a key case study, where price surges were not solely driven by increased production costs but also by profit-maximising strategies in the food and energy sectors. In addition, recent fiscal policies under the so-called “consolidation package” rely heavily on VAT increases, punishing those who already suffer the most. 

“Who Profits from the Rising Prices in the EU? The Case of Slovakia” is a joint project by FEPS, Proforum, and the Friedrich-Ebert-Stiftung (FES) Slovakia to better understand inflationary processes and to explore policy responses in Europe. It complements the recent FEPS policy study on “The profit-price spiral in food and energy” and will produce a policy brief (in Slovak) that contextualises the study’s findings and explores inflation dynamics in the peak period between 2022 – 2023 in the EU and Slovakia.

On 14 May, this expert roundtable presented and discussed the first draft of the policy brief authored by Anton Marcinčin (Comenius University Bratislava). Brigita Schmögnerová (Proforum, former Minister of Finance), Ivan Lesay (National Bank of Slovakia), Juraj Valachy (Tatra Banka, former Head of the Institute for Financial Policy), and Ján Košč (Confederation of Trade Unions of the Slovak Republic) contributed with their recommendations and reflections. The roundtable was moderated by Alena Krempaská (Proforum) and Robert Žanony (FES Slovakia).

The event was held in Slovak and in person only. For further information, please do not hesitate to contact Vanessa Zwisele, FEPS Project Officer (vanessa.zwisele@feps-europe.eu)