The Eurozone deliver record high inflation!

Eurostat – European commission estimates that the inflation will rise to a YOY (Year over Year) of 7.5% in April!

Source: Image taken by Pierre Briançon and edited by Olebulls.

Firstly, not all know how inflation works… Simply put it is the rate which the value of a currency is falling, and it is also determining the general price increase of goods and services. We often say that inflation leads to a decline of your purchasing power (of a given currency). So, when inflation rises 2% you lose 2% of your purchasing power, hence you want to ask for at least 2% rise in salary to compensate for the current inflation. But all things consider you can’t ask for a 7.5% raise in salary now in these times… It would eventually lead to bankruptcy of the company that you work for, and you wouldn’t witness that. This could have been discussed further but it won’t do anything good for the purpose of this article. Please feel free to discuss this topic in the comment section below.

Anyways, the inflation rate is consistently increasing in Europe and that makes me very nervous, especially when I have a family to feed and bills to pay! Every time this rate increases I have less and less to save and less and less to invest into the crypto market (which takes me further away from my goal). April is the sixth month in a row that the inflation rises and that is raising some concerns in Europe. People are starting to ask themselves when is this going to stop, or will it stop? We are basically becoming a more anxious Europe/USA. That said energy prices are the biggest contributor to the price increase and had alone a 38% increase in April. Even though the price increase is massive in April it is less than March that came in on a 44% level.

The rapidly raise in inflation that are now upon us is creating some complicated scenarios for the European Central Bank (ESB). Their conclusion last time was to keep the interest rate at its present value, which is negative .5 percent (for the countries that uses Euro).

The inflation did have a drastically increase the past months and unfortunately it will continue to rise the next months… We do not know how many months but there will be some months, mainly because of the high energy cost. This price increase is affecting several countries around the world and is one of the main reasons that many countries decided to raise the interests, including the USA. The USA has announced double interest raise in the coming meeting that will happen in May.

If these rates and estimates concerns you, which they totally do for me, you better start looking for money placement that can beat 7-10% inflation. One of those placements could be HBD in savings, which is currently at 20% APY (21.93 by monthly compounding). Not financial advice but it is worth mentioning that we do have places here at HIVE that can save our asses in times like these. You should really be proud of yourself - finding your way to the Hive ecosystem. Have a pleasant day and let’s beat inflation together with cryptocurrency!

Anything else we can use to hedge ourselves from the rapidly increasing inflation?

Gold, silver and commodities perhaps? They tend to be ones best friend in recessions and times of high inflation.

Cheers -Olebulls

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