TELF AG has reviewed the intricate relationship between wholesale gas prices, inflation, food costs, and the European Union’s economy.
— TELF AG
LUGANO, TICINO, SWITZERLAND, August 15, 2023/EINPresswire.com/ — TELF AG, a renowned international physical commodities trader with over three decades of industry expertise, has reviewed the intricate relationship between wholesale gas prices, inflation, food costs, and the European Union’s economy. In a recent article by Stanislav Kondrashov, TELF AG analyzes the potential ramifications of the recent drop in wholesale gas prices on these critical economic aspects.
According to TELF AG, the wholesale gas prices in Europe significantly declined in February, sparking optimism that the ongoing cost of living crisis linked to the energy turmoil could abate. The article emphasizes, however, that the effects of reduced energy prices on retail prices will take time due to time lags within the global supply chain. TELF AG’s expert analysis suggests that the potential decline in food prices may become evident approximately six months down the line, contingent on stabilizing energy prices at their present levels.
As per TELF AG’s assessment, multiple factors contributed to the recent reduction in energy costs. The accumulation of substantial reserves of natural gas, coal, and other fuels in 2022, coupled with reduced industrial consumption and milder winter weather, played a pivotal role in this price alleviation. Nonetheless, the analysis underscores that Europe’s reliance on specific energy suppliers and China’s anticipated resumption of economic activity post-COVID restrictions could impede a swift replenishment of reserves.
TELF AG explores the broader impact of the energy crisis on inflation and the economy. The article underlines that while central banks’ measures may lead to a notable reduction in inflation by year-end, the likelihood of significant deflation remains low. Wage growth is projected to lag behind the recent surge in inflation, and the persistence of elevated interest rates could strain consumers’ disposable income, particularly in the context of mortgage costs.
In light of these insights, TELF AG suggests that the recent dip in energy prices could steer Europe away from a looming recession. However, the region remains in a web of economic challenges, including supply chain disruptions, geopolitical tensions, etc. Experts anticipate a prolonged phase of low growth amid sustained above-average inflation.
Read the full article by TELF AG on the impact of wholesale gas prices on inflation, food prices, and the EU economy: https://telf.ch/telf-ag-on-the-impact-of-wholesale-gas-prices-had-on-the-eu-economy/
About TELF AG:
TELF AG boasts three decades of experience as a comprehensive international physical commodities trader. Headquartered in Lugano, Switzerland, the company operates globally, serving commodities producers worldwide by offering tailored marketing, financing, and logistics solutions. TELF AG’s customer-centric approach fosters enduring partnerships and operational excellence, solidifying its reputation as a reliable industry leader.
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