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Inflation explained: What is it, what causes it and how do we deal with it now?

In July, inflation in the eurozone reached an all-time high of 8.9 per cent. That’s four times higher than the same period last year when it was at 2.2 per cent.

All over Europe, the effects of rising inflation are already being felt as food and petrol prices soar.

The COVID-19 pandemic and the war in Ukraine are mostly blamed for the situation, as the resulting disruption of supply chains puts enormous pressure on everyday goods and services.

The growing tension of gas shortages is also adding fuel to the fire as fears mount that our houses will be cold this winter.

But what is really going on? To makes sense of the numbers, Euronews Next spoke to French economy experts who explained what inflation is, what causes it and how the situation and its impact can be handled.

For more on this story, watch the video in the media player above.

Journalist • Thomas Duthois

Video editor • Mert Can Yilmaz

Additional sources • Motion Designer: Matthew Ashe

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