Eurozone inflation shot up in June to a record high of 8.6% and puts pressure on the ECB

More than half of the EU countries recorded double-digit price increases

MADRID, 19 Jul. (EUROPA PRESS) -

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 target of 2% of the European Central Bank (ECB), as confirmed by the community statistics office, Eurostat.

On its side, in the European Union (EU) as a whole, the rise in prices accelerated in June to 9.6% from 8.8% the previous month and well above the 2.2% registered a year ago. year.

According to the community statistical office, the unstoppable rise in prices in the euro zone in the sixth month of 2022 responded to the 42% 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 11.2% 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.

When excluding the impact of energy from the calculation, the year-on-year inflation rate in the euro zone stood at 4.9% in June, compared to 4.6% in the previous month, while also excluding the effect of prices of fresh food, alcohol and tobacco, the core inflation rate stood at 3.7%, one tenth below the record of 3.8% registered in May.

Among the Twenty-seven, the rate of inflation accelerated in June in all countries, except in 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 EU were registered in Estonia (22%), Lithuania (20.5%) and Latvia (19.2%), while the least strong increases were registered in Malta (6.1%), France (6.5%) and Finland (8.1%).

In addition to the three Baltic countries, twelve other EU members recorded double-digit price increases, including the Czech Republic (16.6%); Bulgarian (14.8%); Poland (14.2%); Romania (13%); Hungary (12.6%); Slovakia (12.6%); Greece (11.6%); Slovenia (10.8%); Belgium (10.5%); Luxembourg (10.3%); and Spain (10%), while the Netherlands (9.9%); Ireland (9.6%); Cyprus and Portugal (9% each) 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) will meet this Thursday and, as announced on June 9, plans to raise interest rates by 25 basis points, in what would be the first rise since 2011, in addition to provide details on the new anti-fragmentation instrument to facilitate an adequate transmission of its monetary policy to all euro countries.