Monday, December 4, 2023

Inflation falls to 5.3% in the euro area and 6.1% in the EU, the lowest since February 2022

The year-on-year inflation in the eurozone stood at 5.3% in July, two tenths below the rate for June, and at 6.1% in the European Union (EU), three tenths below that of the previous month, so they are once again at the level lowest since the start of the Russian aggression in Ukraine in February 2022.

According to the revised data published this Friday by the community statistics office, Eurostat, Spain is among the countries with the lowest year-on-year inflation in the EU with 2.1% and only behind Belgium (1.7%) and Luxembourg (2%), although its rate has increased by five tenths compared to that registered in June, of 1.6%.

In July 2022, the inflation it was 8.9% in the euro area, 9.8% in the Twenty-seven, and 10.7% in Spain.

On the other hand, the rate of core inflation in the eurozonewhich excludes the effect of energy, food, alcohol and tobacco as they are the most volatile and serves as a reference for the European Central Bank when setting its monetary policy, it remained stable in July compared to the previous month at 5.5%.

Price increases moderated in all the major euro economies: in Germany fell three tenths to 6.5%in France it fell two tenths to 5.1%, in Italy it fell four tenths to 6.3% and in the Netherlands it fell 1.1 percentage points to 5.3%, although Eurostat points out that this data is provisional.

In July, the main factor behind the price increase in the euro area was services (2.47 points), followed by food, alcohol and tobacco, which contributed 2.20 percentage points, and to a lesser extent the prices of non-industrial energy goods ( 1.26 points).

The prices of the energy they contributed slightly to mitigate the inflation rate in the euro area, subtracting 0.57 percentage points thanks to a decline of 6.1% in their inflation.


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