logo
Regional

EU reacts as cost of living soars across region

The European Union will be sending humanitarian aid if the economic situation in the Pacific deteriorates because of sanctions placed on Russia.

While the sanctions placed on Russia are a result of their invasion of Ukraine, fuel and food prices in the Pacific have been going up.

Fuel prices are at an all-time high and as a result food prices have escalated because of cartage costs going up.

According to freight industry pundits, the price of freight will increase in August causing prices to soar again.

This has meant that the food basket for an average Pacific family has been decreasing.

The European Union’s Deputy Head of EU Delegation for the Pacific Dr Erja Askola said they were aware of the challenges created by the sanction placed on Russia.

She said the quickest way out of a major economic crisis for anyone was to end the conflict in Russia. She said the sanctions were placed because of the act by Russia.

The European Union will be sending humanitarian aid if the economic situation in the Pacific deteriorates because of sanctions placed on Russia. Picture: Jope Tarai Twitter

“The war in Ukraine is creating a lot of challenges. We feel the pressure with the food and energy crisis.”

The sanctions have been placed by the EU and other nations to deter Russia, however the prolonged invasion of Ukraine is having a ripple effect.

Many of the Pacific nations have denounced ties with Russia and condemned the invasion, but have not been spared by the sanctions.

MORE NEWS:
You have our attention – US
The Pacific is one family again

Ivamere Kurusiga, 39, is a single mother who works as a cashier in a supermarket in Suva. She said the recent rise in food prices have meant sacrifices at home.

“For the last two weeks, my children and I are not having breakfast. I use the breakfast money to prepare the lunches of my three children,” she said.

Shoppers at the Suva Market on Saturday. Prices have been going up. Picture: Lenora Qereqeretabua Twitter

Atnish Chand, an information technology specialist said he was paying at least 30 per cent more for the same amount of groceries every week.

“The food I buy every week has remained the same but the prices have gone up. I now pay $300 for what used to cost me around $220,” he said.

The World Bank has warned that the global economy is falling into a prolonged period of stagflation. This is when there is lower growth and even outright contraction.

The World Bank said this would last into the foreseeable future in its latest World Economic Prospects report issued on Tuesday.

Leave a Comment

Your email address will not be published.

You may also like

Send this to a friend