Energy prices have increased rapidly following Russia’s invasion of Ukraine. Prices are likely to remain very high until 2024, creating the biggest energy shock since the 70s, the World Bank warned on Tuesday, 26 April.
This shock, which will inflate energy prices by 50% this year, is aggravated by trade restrictions and rising prices for food products, fuel and fertilizers.
«These developments have started to raise the spectre of stagflation,» said the World Bank expert Intermit Gill.
He invited countries to put all efforts into stimulating GDP growth and avoid actions that would hurt the global economy.
The announcement from the World Bank mentions that energy price rise experienced in the last two years was the most rapid since the oil crisis of 1973, when OPEC countries declared an embargo.
The bank predicts this year the average price of Brent crude will be 100 USD/barrel this year and the price of natural gas in Europe will be double the price observed last year.