Euro zone: May saw a new record for inflation at 8.1% year-on-year

Eurostat announced Tuesday that the inflation rate in the euro area reached 8.

Euro zone: May saw a new record for inflation at 8.1% year-on-year

Eurostat announced Tuesday that the inflation rate in the euro area reached 8.1% in May. This was due to an increase in fuel and energy prices caused by the conflict in Ukraine. feed. The inflation rate in April was 7.4% for 19 countries that have adopted the single currency. This estimate has been revised down by 0.1 points. These numbers are the highest ever recorded by the European Statistics Office since January 1997, when the indicator was first published.

Since November, consumer price inflation has reached record levels in every month. It was declared last year that it was a temporary phenomenon linked to the strength and recovery of the economy after the shock from the pandemic, as well as disruptions in supply chains. The Russian invasion of Ukraine at the end February and the Western economic sanctions against Moscow exacerbated the price surge and raised fears about a sharp decline in gross domestic product (GDP) growth.

Inflation is most affected by the energy sector (oil, gas, electricity, etc.). After a jump of 37.5% in April, this component of the price index increased 39.2% in May.

The increase in food prices, including alcohol and tobacco, is also increasing to 7.5% from 6.3% in April. This acceleration also affected industrial goods (4.2% after 3.8%) as well as services (3.5% compared to 3.3% in the previous month). According to the consumer price index, France is less affected than its European neighbours, with 5.8% inflation in may, the second-lowest rate in the euro area after Malta (5.6%). Eurostat calculates consumption (HICP). Germany saw 8.7% inflation.

The Baltic countries have the highest rates: Estonia has 20.1%, Lithuania has 18.5%, and Latvia has 16.4%. These are countries bordering Russia that are particularly vulnerable to the end of their commercial ties. country.

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