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Found the culprit of record inflation in the eurozone: it’s Russian gas

Inflation in the eurozone accelerated in July and again reached a record high. Compared to July last year, consumer prices increased by 8.9 percent. This was reported by the EU Statistical Office Eurostat.

This is the highest rate since the introduction of the euro as a currency for non-cash payments in 1999. In June, consumer prices rose by 8.6 percent. Experts expected a rise in price in July at the level of 8.7 percent.

The increase in prices is a consequence of the increase in energy prices, which increased by 39.7 percent compared to July last year. However, the growth was somewhat weaker than in the previous month. But on the other hand, the rise in prices accelerated in the field of food and flavoring products – from 8.9 to 9.8 percent.

Core inflation, which excludes the particularly volatile prices of energy, food and food products, rose from 3.7 percent to 4 percent. The highest rates of inflation in the euro area – more than 20 percent – were again observed in the three Baltic states. In Germany, the inflation rate, calculated according to European standards, amounted to 8.5 percent.

The European Central Bank about a week ago raised its key rate for the first time in eleven years. Compared to other central banks, the ECB reacted later than usual, even though its 2 percent inflation target had long been exceeded.

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