The New Economics Foundation revealed that every 10% increase in fossil fuels aggravates European inflation by 0.36%. The study highlights that accelerating the transition to wind and solar energy is the most effective way to protect Europe from inflation.
According to the foundation, this strategy shields the economy against oil volatility. IMF data mentioned in the study indicates that every 1% of renewable energy reduces electricity prices by 0.6%.
The study shows that increases in fossil fuel prices directly affect Europeans' wallets through inflation, making the energy transition a practical economic issue and not just an environmental one. Readers can expect that policies promoting renewable energy could help stabilize energy prices in the future.
This is our short summary of a report published by SAPO on 15 September 2026 at 08:13; the full text stays with the publisher. In our feed it sits under Business. We currently carry 23006 items in that section.
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