Eurozone inflation records record levels in August, rising to 9.1% | Economie

Inflation has become one of the biggest problems in the economy not only in Spain, but in all European countries. The European statistics office, Eurostat, is back on Friday, adding a new twist to the concern. It is about economic development.

Inflation in August hit a record high in the Eurozone, reaching 9.1% y/y after rising by twenty compared to July. In the European Union as a whole, the price increase exceeded double digits to reach 10.1% year-on-year, after increasing by three-tenths compared to July.

The price hike in the Eurozone intensified in the eighth month of 2022, despite the fact that year-on-year rise in energy prices slowed to 38.6%, one point lower than in July. This data was offset by the increase in prices for processed foods, alcohol and tobacco, which amounted to 10.5% in August, while it was 9.4% in July.

Excluding the energy impact, year-on-year inflation in the Eurozone fell to 5.8%, compared to 5.4% in July, and if the effects of fresh food, ie core inflation, are also eliminated, it is also at record levels at 4.3% year-on-year.

According to August data, the distance with the average in the eurozone was reduced by four tenths, as a result of the fact that in July annual inflation in Spain was set at 10.7% and inflation in the eurozone at 8.9%. In terms of average societal inflation, this drop was five-tenths.

After an upward trend as a result of the effects of the war in Ukraine, the European Central Bank (ECB) last week agreed to raise its benchmark interest rate by 75 basis points after rising by half a point in July.