Annual inflation breaks record in Europe for the seventh month in a row


Key facts:
  • The inflation rate in the Eurozone has risen again after reaching 7.4% last April.

  • As many as 6 countries recorded double-digit inflation in May.

The Eurozone will break the inflation record for the seventh consecutive month. This is reflected in the preliminary estimates of the European Statistical Office (Eurostat), which place The annual inflation rate reached 8.1% at the end of May of this year.

Inflation rate for the month of May It exceeds the 7.4% recorded last April, which is already a new record in the eurozoneAccording to a report by the European Foundation published this morning, Tuesday, May 31.

In the same report, it is estimated that the largest impact on the inflation index will be in the energy sector, with an increase of more than 39% between May 2021 and this year. This is followed by higher consumer prices for food, tobacco and alcohol, with an annual increase of 7.5%.

Comparison of inflation in different sectors
The energy sector was the main driver of the inflation rise in May. Source: eurostat / ec.europa.eu

Six countries in the eurozone had double-digit inflation indicators in May, according to figures in the preliminary report. In the menu stands out Estonia, the only country above 20%According to Eurostat data. Other countries, such as Luxembourg and Lithuania, exceeded 15%.

Spain’s inflation rate was 8.5%. The figure, although slightly higher than in April (8.3%), is an improvement over the record high reached last March, when the country crossed 9.5% and set a maximum in 37 years.

Today’s bear markets

European markets opened lower on Tuesday, along with the publication of the inflation index. Indicators such as The Euro Stoxx 50, Germany 30 and France 40 were the hardest hit, all down 1%.

So far this day, the Euro has also suffered in the market, down 0.77% against the Dollar at the time of writing. With this movement, it is falling back to the levels it was a week ago, although regarding the middle of this month, the behavior of the European currency has been bullish.

There are analysts They see the European panorama as somewhat gray in economic terms. One of them is David Battaglia, who confirmed via Twitter: “The market has to understand that Europe is on its way to hyperinflation and that the European Central Bank [Banco Central Europeo] You have no way to stop this.”

Previously, other analysts have already come Warning that a great crisis is coming. Not only at the European level, but all over the planet. Argentine analyst Carlos Maslaton; Or flix1 are some of those who predict a not very optimistic near future.

Leave a Comment