Dynamic price changes in Europe have reflected importantly on citizens' portfolios for the last 16 years, including Poles. According to a study by Grzegorz Drędź, an analyst of Conotoxia Ltd., there was an increase in prices on different life levels, peculiarly hitting the cost of housing, gas, electricity and food.
Data analysis shows that prices in Europe have increased by 39.7 percent on average over the past 16 years. In addition, food and non-alcoholic beverages besides increased by 51.6 percent. This is peculiarly severe for consumers' pockets, which force home budget revisions and adaptation to fresh marketplace realities.
The study by analyst Conotoxia Ltd. besides indicates circumstantial price increases of individual products. It is worth noting that energy enjoys a leading position among products whose prices fired up by as much as 107 percent. The same group besides included oils and fats, with an increase of 102 percent, and tobacco products, including cigarettes whose prices increased by 101.6%.
Poland: advanced inflation up to fresh years
An highly crucial component of the analysis is the situation of Poland, which experienced 1 of the biggest inflation in Europe in fresh years. Analyst Grzegorz Drędź draws attention to areas that have been peculiarly powerfully affected by price increases. peculiarly severe increases have been recorded in the mining sector, where prices have more than doubled to 159 percent. Second in terms of price increases were energy, gas and water services, with an increase of 152%. The price of meat and poultry products, which increased by 150 percent, is followed.
An interesting phenomenon is besides the impact of beginning up European markets on imports from Ukraine, which, despite advanced inflation, led to a decrease in wheat prices by 11% and rye by 18% since 2008.
Inflation has not been uniform over the years. Analyst notes that the crucial increase in inflation starts in early 2020. By then, inflation seldom exceeded 3% per year. Of the 5 categories most susceptible to inflation, only tobacco prices are rising regularly.
Impact of inflation on investors
High inflation on the 1 hand may propose that energy and tobacco producers enjoy profits. However, reality is more complex. Comparing the results of the Energy choice Sector SPDR Fund with the results of the main S&P 500 index, it can be noted that despite an exceptionally good period for energy producers, their stock increases are virtually identical to the results of S&P 500.
The situation is akin in the tobacco industry, where despite the regular increase in product prices, this is not the best time for companies. Additional fees and taxes on tobacco products may have a crucial impact on the financial performance of companies.
In summary, while any sectors experiencing advanced inflation may seem attractive to investors, deep analysis and caution are needed. Price increases do not always go hand in hand with the affirmative results of companies' shares in these sectors. This is an crucial message for all financial marketplace stakeholders and consumers observing changes in their accounts.
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Poland has any of the most costly product prices. We are leaders of price increases in Europe
