European gas prices hit four-year high, sparking inflation and energy cost concerns

European wholesale gas prices reached over €97 per MWh on Monday, the strongest level since the 2022 energy crisis and nearing the €100 threshold that could shape market sentiment. Economist David Marek highlighted that high contract prices for electricity and reduced gas storage across the continent are amplifying cost pressures for consumers and firms. He warned that the combination of expensive energy and a projected drop in agricultural yields could reignite inflation and push food prices higher.

Marek cited ongoing supply concerns tied to the Middle East conflict and limited winter deliveries as key drivers. Czech Industry Minister Karel Havlíček said that while Europe does not face an immediate gas shortage, the high price on the Rotterdam exchange—about €90 per MWh—undermines competitiveness and raises electricity costs. Havlíček also reported securing a pledge from Algeria to double its gas deliveries to Europe, aiming to diversify supply sources.