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Eurozone inflation hits another record high

euro area annual inflation and its main components june 2012 to june 2022

Driven by rising energy costs, consumer prices in Eurozone jumped 8.6% over the year through June, hitting another record high since the creation of the Euro in 1999.

Euro area annual inflation is expected to be 8.6% in June 2022, up from 8.1% in May according to a flash estimate from Eurostat, the statistical office of the European Union.

Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in June (41.9%, compared with 39.1% in May), followed by food, alcohol & tobacco (8.9%, compared with 7.5% in May), non-energy industrial goods (4.3%, compared with 4.2% in May) and services (3.4%, compared with 3.5% in May).1

euro area annual inflation june 2022
Credit: eurostat
euro area annual inflation and its main components june 2012 to june 2022
Credit: eurostat

The data reflect an escalating squeeze on households and firms across the 19-member currency bloc, where France, Italy and Spain reported new all-time highs this week, Bloomberg’s Andrew Langley noted.2

“Germany, the continent’s No. 1 economy, only saw a slowdown thanks to fuel-tax cuts and public-transport discounts that are temporary.

“In the Baltic region, price growth has shot past 20%. Governments have weighed in with billions of euros in support, but their ability to help is limited after spending huge sums during the pandemic.”

References:

1 Euro area annual inflation up to 8.6% – Eurostat – July 2022

2 Euro-Zone Inflation Hits Record, Boosting Case for Big Hikes – Bloomberg – July 1, 2022

Featured image: Euro area annual inflation and its main components, June 2012 – June 2022. Credit: eurostat

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