Inflation in Europe by June 2022
The data from Eurostat has revealed that the inflation in the eurozone reached an all-time high of 8.9 percent in July.
Inflation can be defined in two ways. The first is the rate at which prices rise over a particular period of time. Second, it is the decline in the purchasing power of money over a specific time period. Nevertheless, which definition you take, inflation tells us a more severe problem: the cost of living increases in a certain economy, and the consumers have a lesser and lesser source to consume.
The data from Eurostat has revealed that inflation in the eurozone reached an all-time high of 8.9 percent in July, up from 8.6 percent in June. In terms of the main components of eurozone inflation, energy is reported to have the highest annual rate in July (39.7 percent, compared to 42.0 percent in June), accompanied by food, alcohol, and tobacco (9.8 percent, compared to 8.9 percent in June), non-energy industrial goods (4.5 percent, compared to 4.3 percent in June), and services (4.5 percent, compared to 4.3 percent in June)
The July data indicates a slight decline in energy inflation, from 42 percent in June to 39.7 percent in July, but also a rise in all other indices.
The global food crisis interrupted supply lines, and China's rigorous zero-Covid quarantines are all putting a strain on basic commodities and services.
Price inflation, which eliminates volatiles and provides a more accurate picture of consumers' actual spending power, remained at 4%, the highest level since the euro's introduction.
In Germany, yearly inflation climbed to 8.5 percent, following a tiny decline last month (8.2 percent) that boosted hopes for relief.
On the other hand, prices in France increased by 6.8 percent, while prices in Italy increased by 8.4 percent.
Due to their reliance on foreign imports to supply their energy demands, the Baltic countries remain severely impacted by the increasing trend – Estonia (22.7 percent), Lithuania (20.8 percent), and Latvia (21 percent).