When oil and gas prices rise, people can end up paying more for essentials. The war on Iran has exposed this vulnerability again. Dependence on fossil fuels leaves people's living costs tied to conflict, disrupted supplies and volatile international markets. Written by Dr Mauricio Vargas, an economist at Greenpeace Germany, and published by Greenpeace International, this report examines fossilflation, the inflationary pressure caused by rising fossil fuel prices. Drawing on data for the eurozone and Germany, it investigates how energy prices drive changes in inflation and how renewable energy and electrification can reduce exposure to price shocks.
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