Energy Costs Fuel Inflation Fire

Countries like Hungary, Poland, Turkey and the Czech Republic are struggling with weak currencies in the face of rising energy prices. The Czech National Bank increased interest rates by 75 basis points to combat the problem. Hungary plans to increase base interest rates by 15 points, and Poland may be close to a rate hike of its own. Turkey, however, cut its interest rates 100 basis points. Due to energy supply chain issues that expose these countries to enhanced risk, each nation could continue tweaking its economy in an effort to stave off inflation. European gas prices have risen 300% this year, and energy prices in Turkey jumped 15% in September alone. Additionally, the lira fell to a near record low 11 cents in early trading.