inflation smashes a new record in June at 8.6%
The inflation rate in the euro zone hit a new high in June, at 8.6% year on year, Eurostat announced on Friday, as the war in Ukraine stokes a spike in energy and fuel prices. ‘feed.
Inflation reached 7.4% in April and 8.1% in May for the 19 countries that adopted the single currency.
Consumer price inflation has hit record highs every month since November, even though last year it was seen as a temporary phenomenon linked to the strength of the economic recovery from the pandemic shock and the disruption of markets. supply chains.
The invasion of Ukraine by the Russian army at the end of February as well as the Western economic sanctions against Moscow reinforce the surge in prices and raise fears of a sharp drop in the growth of the gross domestic product (GDP).
Inflation in the euro zone is well above the objective of a level close to 2% set by the European Central Bank (ECB). The institution is therefore preparing in July to raise its interest rates for the first time in eleven years.
This prospect has resurrected the risk of a debt crisis in the euro zone, with growing gaps between the interest rates demanded of the States of Northern and Southern Europe to borrow and finance their deficits.
The ECB will go “as far as necessary” to fight against “excessively high” inflation which should remain so “for some time yet” in the euro zone, warned Tuesday the president of the institution, Christine Lagarde.
The strengthening of inflation primarily affects the energy sector (electricity, oil, gas, etc.). This component of the price index jumped 41.9% over one year in June, after 39.1% in May.
But the increase in food prices (including alcohol and tobacco) is also accelerating to 8.9%, against 7.5% in May. The rise in the prices of industrial goods (+4.3%, after +4.2%), like that of services (+3.4%, compared to +3.5% the previous month) was generally maintained.
According to the harmonized index of consumer prices (HICP) calculated by Eurostat, France is relatively less affected than its European neighbors, with 5.8% inflation in June, the second lowest rate in the euro zone. behind Malta (6.1%). Inflation reached 8.2% in Germany. The highest rates are recorded in the Baltic countries: 22% in Estonia, 20.5% in Lithuania and 19% in Latvia, countries bordering Russia and particularly exposed to the breakdown of trade links with this country.