Inflation breaks record in Europe and shoots up to 8.6% in June

Europe Press
Updated: 07/01/2022 15:39h

The year-on-year inflation rate in the euro zone stood at 8.6% in June, compared to the 8.1% registered in May, which represents the highest increase in prices in the euro region in the entire historical series and more than four times the price stability goal of 2% of the European Central Bank (ECB), according to the preliminary reading of the data published by the community statistics office, Eurostat.

According to the community statistical office, the unstoppable rise in prices in the euro zone in the sixth month of 2022 responded to the 41.9% year-on-year rise in energy prices, which accelerated from 39.1% in May, while the increase in the price of fresh food in June was 11.1% year-on-year, when in May it had been 9%.

In turn, services became more expensive by 3.4% year-on-year, one tenth less than the previous month, while the prices of non-energy industrial goods rose by 4.3%, compared to 4.2% in May.

Excluding the impact of energy from the calculation, the year-on-year inflation rate in the euro zone stood at 5% in June, compared to 4.6% in the previous month, while also excluding the effect of electricity prices fresh food, alcohol and tobacco, the core inflation rate stood at 3.7%, one tenth below the record set in May.

Among the member countries, the inflation rate accelerated in June in all except Germany, where it moderated to 8.2% from 8.7%, and the Netherlands, where it went to 9.9% from 10.2 % of May.

The largest price increases in the eurozone were registered in Estonia (22%), Lithuania (20.5%) and Latvia (19%), while the least strong increases corresponded to Malta (6.1%), France ( 6.5%) and Finland (8.1%).

In addition to the three Baltic countries, six other euro zone members posted double-digit price increases, including Slovakia (+12.5%); Greece (12%); Slovenia (10.8%); Belgium (10.5%); Luxembourg (10.3%); Y
(10%), while the Netherlands (9.9%); Ireland (9.6%); Cyprus (9.1%); and Portugal (9%) registered rates of at least 9%.

In the case of Spain, the harmonized inflation rate stood at 10% in June, compared to 8.5% in May, widening the unfavorable price differential with respect to the eurozone average to 1.4 percentage points.

The Governing Council of the European Central Bank (ECB) announced on June 9 that
will raise interest rates by 25 basis points in July
the first increase since 2011, in addition to anticipating its intention to raise the rate again in September, with an intensity that could even be greater if the inflation outlook continues above the institution's 2% target.

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