The figure fell on Wednesday morning. Inflation in the euro zone hit a new record in August, when it reached 9.1% over one year, announced the European Union’s statistics office, Eurostat. For the 19 countries sharing the single currency, consumer prices are reaching historic highs caused by the war in Ukraine and soaring energy and food prices.
Faced with the crisis situation, the European Central Bank (ECB) should continue its rate recovery policy despite the risk of cooling the recovery of European economies. Inflation also reached 8.8% in Germany, 9% in Italy and 10.3% in Spain. According to Jack Allen-Reynolds, an expert from Capital Economics, quoted by AFP, inflation could reach 10% before the end of the year. With wages that do not keep up with the level of inflation, it is a crisis of purchasing power that weighs on all the economies of the Member States.
However, in France, it has lower levels. The latest figures show 5.8% compared to a year ago, the lowest level in the euro zone. For the first time in more than a year, the rise in prices has even slowed since inflation was at 6.1% in July. The slowdown can be explained above all by a slowdown in energy prices.
“It is far too early to speak of a real slowdown in inflation,” notes in an analysis note shared with AFP Charlotte de Montpellier, economist at ING bank, who wants to be cautious. It is, however, a deceleration. While the peak of inflation was expected for the fall, it could be reached. The hypothesis is studied. However, nothing is certain as the uncertainties are great, particularly with regard to Russian gas and the approaching winter.
“The only thing we know for sure about inflation is what we see rather than what we expect. Inflation will last, but at a lower level than we know,” reacted for his part of the Minister of Labor Olivier Dussopt, during the Rencontres des entrepreneurs de France (REF), organized by the Medef. The government highlights its action to explain these results. He particularly believes in the benefits of the energetic shield as well as the fuel discount. The exceptional energy defense council to be held on Friday aims to confirm this trend and avoid an explosion in energy prices, which would ruin the prospect of a slowdown in inflation. The horizons are still uncertain.
