War, winter and money worries: Catalans living with 20% inflation in Latvia, Estonia and Lithuania

Surging inflation is being felt all over Europe – not least Catalonia – but it is Latvia, Estonia and Lithuania that have been most affected. 

The three Baltic states recorded Consumer Price Index increases of more than 20% in October, almost triple that of Spain. 

Speaking to the Catalan News Agency (ACN), Catalans living in each of the three countries explained how the soaring price increases are being felt in their adopted homes. 

"In September, bananas cost €1. Yesterday I went shopping and they are at €1.40 a bunch," says Marc Dolcet, who has been living in Estonia for two years. He has also noticed price hikes for other fresh produce such as fish, and chicken, which has gone from €5 to €8 per kilogram. 

The cost of living in Tallinn is already similar or higher than in Catalonia, Marc says, but he hasn't yet had to start cutting back his grocery shopping. 

Energy and gas price increases mean he has gone from paying €220 to €280 per month for accommodation, including bills. 

Bills are also a worry at the laboratory where Marc, a PhD student, works. "We've already been told to prepare. In my department they've installed sensors in all the corridors and the lights are always off. They only come on if someone walks by," he says by way of example. 

Roc Domingo, from Esplugues de Llobregat just outside Barcelona, has been living in Lithuania for just over six months. Even in that time he has noticed inflation when buying food, especially imported products, and other basic goods. 

"Here it seems quite out of control," he says. "In other countries they make policies to stop it, but not here". 

Roc, a graphic designer, has seen that in many old buildings, like his, they have decided not to turn on the central heating. 

"We spent a few weeks at eight or ten degrees and with no heating," he says, adding that his electricity bill has doubled in a few months. 

"One of the solutions authorities have to prevent electricity and gas prices from increasing is to not offer electricity and gas until it is very cold," he added.

War and winter 

Despite this, he says that inflation is not discussed much on the streets, where conversations, news and politics revolve solely around Ukraine and the coming cold of winter. 

"Here the main fear is about the proximity of the war, so there is not that much talk about prices", he says. 

Oriol, who has lived in Latvia for years, assumes that inflation will continue to rise. "It looks like we are in this for the long run, the forecasts are not good, so the technique I have is basically to save," he says. 

The Baltic countries have "very adaptable" societies, Oriol says. The prevailing attitude is one of "resignation", rather than protest. 

Low unemployment and post-pandemic recovery 

As well as rising energy and food prices, other factors specific to the Baltic countries have led to inflation hitting 20%. 

According to Pedro Aznar, professor of economics at Esade in Barcelona, there are three main additional considerations. 

Firstly, food and energy carry more weight when calculating the Consumer Price Index in Estonia, Latvia and Lithuania compared to Spain. 

Secondly, unemployment in the Baltic nations is very low, so it is easier for the increase in inflation to translate into higher wages, which, in turn, fuels an increase in prices. 

Finally, countries such as Estonia have had a very significant recovery after Covid, which has encouraged consumption and, in turn, raised prices.