Eurozone annual inflation hits record high in July
Inflation in the euro zone broke a new record in July at 8.9% over the year, after 8.6% in June, announced on Friday July 29 Eurostat, the statistical office of the European Union.
This indicator has made a new high every month since November. In addition to rising energy prices (fuel, gas, electricity), European households are increasingly confronted with rising food prices.
As for the main components of inflation in the euro area, energy is expected to register the highest annual rate in July (39.7% versus 42% in June), followed by food, alcohol and tobacco (9.8% versus 8.9% in June). June), non-energy industrial goods (4.5% vs. 4.3% in June) and services (3.7% vs. 3.4% in June).
The lowest inflation in July was recorded in France (6.8%) and Malta (6.5%). The Baltic countries had the highest rates: 22.7% in Estonia, 21% in Latvia, 20.8% in Lithuania.
Growth accelerated to 0.7% in Q2e trimester
Economic growth, on the other hand, developed much better than expected in the second quarter at 0.7% compared to the previous quarter.
If the war in Ukraine continues to drive up prices in the nineteen countries that share the common currency, it has not yet brought the economy to a standstill. After 0.5% GDP growth from January to March, economists expected a significant slowdown. However, the activity has been fueled by the good performance of tourist services, thanks to the lifting of the restrictions related to the pandemic from Covid-19.
” Good news ! Eurozone economy beats expectations in second quarter »was happy about it Twitter EU Economic Commissioner Paolo Gentiloni. But he warned the rest of the year could be more difficult. “Uncertainty for the coming quarters remains high: we must maintain unity and be prepared to respond to a changing situation if necessary.”he commented.
Good news! Eurozone economy beats expectations in #Q2. The uncertainty for the coming quarters remains high: nope… https://t.co/vpL7K42Iet
Eurozone gross domestic product outperformed that of the United States for the April-June period, up 0.7% from the first quarter and 4% from the second quarter of last year. Indeed, US GDP contracted an annualized 0.9% after already contracting 1.6% in the first quarter.
Within the European bloc the situation is mixed. Strong growth was recorded in Spain (1.1%), Italy (1%) and France (0.5%). But Germany, Europe’s largest economy, stagnated (0%).