is dale, send a strong enough message to moscow? lithuania has already ended all imports of russian energy. we'll find out how the country is coping as a state of a business on robots in berlin. welcome to the program. inflation and the countries that use the euro has hit a record high of 8 point one percent. figure 4 may shows how life continues to get more expensive for many europeans. inflation has been rising for the last year, getting further and further away from the european central banks target of 2 percent. you'll see here originally it was supply problems caused by the pandemic. that kicked off the kline but war in ukraine is caused food and fuel prices to rise pushing of inflation even further. but again, on this, let's speak to chief economist at banburg bank, hawkish meeting. great. have you with haga as, as ever, i mean, how does this figure 5 point one percent fitting with what we were expecting for

the yours and be afraid of 8 point one percent is slightly above expectations, but it doesn't fit the overall story for now. inflation pressures are still tilting to the outside. there is still quite a bit of inflation pressure in the pipeline from the price increases for energy, for food and from the supply chain disruptions for now that is for the next few months, we cannot hope for law. we yeah, there hasn't really been any sign so far that this is going to slow down. is it so that european central bank under more pressure to act? yes, the european central bank is under pressure to act. but part of the problem for the european central bank is that of course, these high prices for oil for food also can very much into consumer disposable income. consumers have to spend more on energy and hence they have left to spend on

other things. so differently, this is a shock that drives up prices, but it also probably his economic growth, which now at the moment is that they think and the european central bank has to find a balance between these 2 things. are you prices, but slow growth, or even stagnation and the says risk. so they probably decide to go ahead with the rate hikes, but not be very aggressive to not kill the on the part. so does the c, b, but what about national governments within the or as an, are they doing a bit to try and bring down inflation? well, there's not much that governments can do to bring down inflation directly. they have not much control over what many of them are fortunately doing is to help people the most vulnerable with subsidies or with, for instance, a cat in petro taxes here. and they are what precisely governments are doing,

differs from country to country. and not all of that is quite rational, i'm freight, but at least governments by and large are doing something to help the most severely affected. so are we saying, i guess this talks about the, or as and some say across more than a dozen countries or we think very different amounts of inflation in different member states. yes, the range is very, very broad in france. inflation remains relatively contained by the standards of other countries, which is partly because france has significant government intervention into the energy market. also, because it does use nuclear energy for which of course we do not see such a spike in prices. and on the other hand are countries where gas and oil plays may do shale in the distribution of or household spend their money on. these are, for instance, the baltic countries where facial rates are significantly higher than the euro on

average. ok, hawkish, meeting, chief economist, have arabic, bank as ever. thank you for joining us. you must go outside of the your as amber still in the you is hungary, which is also fighting its own inflation battle with the war in ukraine right on their doorstep. hungarians are failing, the knock on effects more than most new labels. again, prices have sharply increased for coffee, it has nearly doubled since last here, whenever they carry them out in k got it. i have just changed price tax and when i still buy home much, they have increased. i will stop my will efforts them. the inflation rate for april stands at 9.5 percent in hungary, one of the highest in eastern europe. in an attempt to turn the tide, the state fixed the prize for a few products. for instance, for sugar. also this pack of flour and this bottle of sunflower oil costs just as

much as last year. now this is due to government price caps, which are in place until july 1st, but keeping some prices artificially down didn't change the overall inflation for so many other products. consumers tell us they are paying about 40 percent more for their entire shopping basket. this is $500.00 for in this is exorbitant the price of florida oil. it means nothing. and that's not what we live. probably prime minister or bon says prices have gone up due to the war in ukraine and sanctions imposed by the european union, which hungary is a member off. and his price caps allegedly support the families. the manager of this rural gasoline station disagrees. he must sell the fuel for 484 in the later. that's about one your and $0.25. one of the lowest prices in europe and another price cap. he can barely remain open, cover rising energy costs or pay salaries. he says, we have

a family tube they need to be supported to. if i cannot bring money home with my families not being supported along with other privately own gasoline stations, he sues the government over alleged violation of their property rights. he says, i find it outrageous that i must operate this with loss and cannot closer on that as georgia access price caps won't help decrease inflation without austerity measures. hungary, economic reality will become non manageable. the economy choreography that we have a trends officer. we have a high inflation, the firm. nothing. no good news are coming from divert economy. ah, the energy prices remain high. so all those issues are there, are there this, there is no real culpable death. the government has now made it clear that it's bracing for an economic crisis. what's less clear is whether it's measures are

effective to deal with it. i take a look at some of the other global business stories making the news. israel has signed his 1st free trade deal with an out of country, the united arab emirates, it abolishes duties on 96 percent of the products they trade. just 2 years ago, 2 countries normalized diplomatic relations trade between israel and the u. a total, some 900000000 dollars last year. starting today, gas prom will stop supplying gas to the netherlands after dutch by a gas tara refused to pay in roubles. the russian state company says gas tara says it already has contracts elsewhere for the 2000000000 cubic meters of gas. it was due to receive from gas problem through october. now the european union has agreed to ban more than 2 thirds of russian oil imports. a compromise deal exempting pipeline deliveries reached by leaders at the 27 mash nation block is me

a meant to punish russia for its invasion of ukraine. 3 months ago, european council chief shall, michelle says, the move will target a huge source of financing for the invasion, and put maximum pressure on president vladimir putin to end the war. the agreement also ban was russia's biggest lenders, burbank from the swift messaging system on sanctions 3 state broadcast as well. joining me in our studio is our reporter, cassandra, some great harvey with us. just explain to us exactly what this compromise deal actually looks like. right. the oil embargo had been in talks for weeks and since it's 1st came about was 1st proposed, one of the main opposition leaders has been hungarian, president victor or a bond. that's because a huge amount of its oil is rushing oil. that comes through a key pipeline, 65 percent. it's a really, really big number. so victor or bon president or bond had been a, the leader of this opposition block for weeks. but after some late night

negotiations last night, the deal, as you said, exempt pipeline oil and it is mainly applied to tanker oil. the husband explicit in saying this is a temporary exemption. this is not for the long term and stepping back back. this round of sanctions is the 6 round of sanctions and the next 7 months are going to be really critical. because a president, ursula vander lion has said that by the end of the year, they're expecting any kind of band to include up to 90 percent of russian oil coming into the or really not coming into the u. i invest because partially the actions of individual members state so, so what are they doing as well as they see wider, there's different appetites for this depending which a member state you're looking at. right? so looking specifically at point, for example, they've, in many ways been at the vanguard they said back in march, that, that by the end of this year, they wanted to completely, we in themselves, off of russian oil, gas and coal. so that's been a big move, part of the reason that they could do that is because they have

a liquefied natural gas terminal. it's about 5 kilometers from the german border, which i found quite interesting because germany famously doesn't have an l. n. g. terminal. germany, on the other hand, still really dependent on russian fossil fuels. they have made some moves. germany has made some moves. it's working with belgium, the netherlands, and denmark to build a wind farm and off in the north sea. and they've committed earlier in may to g 7 plan to phase out coal power from russia. so there are some moves of that's kinda where we're at right now. i think center some thanks for staying on top of that force. now while the you $27.00 struggled to come up with a common plan for ending their reliance on russian oil meant to stay lithuania was already taking action. a week ago the lithuanian government announced that it had stopped all oil gas and electricity inputs from russia. but he knew the 1st country in the you to do so. this is what baltic independence looks like. back in 2014

lithuania, invested in a liquid natural gas terminal. as a result, gas imports from russia could be reduced step by step total dependency, as becomes 0 dependency. i feel incredible, i feel proud that we did it on time. lithuania was occupied by the soviet union for nearly half a century. independence was a little over 30 years ago. the small country appreciates its freedom. we have to choose sides and choosing the wrong side in history. as a very big damage for your future, the country is also moved away from russian, oil and electricity. it's refineries have been converted to process oil from saudi arabia. electricity is increasingly coming from renewable sources. the solar industry and lithuania is booming. everybody agrees to pay extra to have re and power power produced them in living room. so prof,

i think this is not a priority of safety rails many here believe that what lithuania can do should also be possible in the other 26. you countries as well and a quick reminder the top business story that we're following for you, this our inflation in the or is and hit a record 8 point one percent in may significant jump from 7.4 presented april puts further pressure on the european central bank to act to stop price rises, getting out of control. that's all from us. this time round from olga to theda. we dot com slash business. ah, ah, ah, with

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we still have time to go and going on with his subscriber all morning was like a this is d, w. news live from berlin. the european union agrees a ban on most russian oil imports by the end of the year. it's the harshest measure get imposed to punish moscow for its aggression in due crime. meanwhile, on the ground, russian forces pushed deeper into the eastern city of seattle. the net.