Eurozone inflation rises to 8.6 percent, the highest ever, driven by high energy prices.

Record energy prices pushed inflation across countries using a common European currency to 8.6% in June as the collapse of the war in Ukraine and the economic conflict between Russia and Western Europe continued. rice field.

Almost half of the 19 countries in the euro area have reached double-digit inflation, according to the European Union’s Statistics Bureau, a figure released by Eurostat on Friday. The overall rate reached a record high since the euro was founded in 1999.

Many countries have relied heavily on Russia as a source of fossil fuels to run their economies and warm their homes. However, the amount of energy flowing from Russia into Europe, especially natural gas, has fallen by more than half since Russia’s invasion of Ukraine on February 24, pushing prices to record levels, and the European government has set a solution. I’m looking for it.

New data support plans for the European Central Bank to raise interest rates for the first time in more than a decade at a three-week meeting, and to raise them further later this year, amid concerns that the risk of sustained high inflation will outweigh. The outlook for slowing economic growth.

Every country in the euro area has a different economy, so the situation in each country is different. Inflation in Germany and the Netherlands fell slightly in June, but Spain set a record and reached double digits for the first time since 1985. For the three Baltic states in northeastern Europe (Latvia, Lithuania and Estonia), this high was a reality. Several months.

Estonia

Estonia recorded annual inflation rate 22 percent, Highest in the euro area, followed by neighboring countries of the Baltic Sea, Latvia (19%) and Lithuania (20.5%). The three countries lack domestic energy sources and are exposed to exorbitant prices in the spot market due to efforts to replace Russia’s energy.

France

In contrast to the Baltic states, France has a variety of energy sources that help keep inflation relatively low. 6.5% In June. Recently, some reactors have gone offline, but the country is generally less dependent on fossil fuels, protecting it from the worst of Russia’s war in Ukraine.

Spain

For the first time since 1985, Spain’s inflation rate soared to double digits, 10 percent In June. High energy prices are primarily responsible, as food prices rise. The Madrid government has passed a € 9 billion bailout package to help vulnerable households deal with it, including transportation subsidies and an 80% reduction in energy taxes. ..

Germany

Inflation fell in June in Germany. 8.2 percent From 8.7% of the previous month. Analysts pointed out a government program that encouraged the use of public transport with a € 9 per month pass and included a reduction in the country’s infamous energy tax as a reason for the decline, but saw this move as a trend. Is not …

Deutsche Bank blamed sustained supply bottlenecks and energy price pressures, saying, “In our opinion, there are still no compelling signs that a strong rising inflation spiral will soon lose momentum.” ..