The evolution of prices remained stable at 5.3% in the euro zone in the month of August, according to the estimate of the inflation rate advanced by Eurostat (the European statistical office). It is the first time that there has not been a reduction in the inflation data after chaining ten months downward from the peak suffered in October 2022, at the worst of the energy crisis. Spain (2.6%, according to the calculation made by the INE) continues to be, along with Belgium (2.4%), the country with the lowest rate, despite the rise of three tenths experienced by the rise in fuel prices . The drop in energy prices slowed down across the continent in August, falling by 3.3% compared to 6.1% in July.
Record wage hike in Germany favors another ECB rate hike in September
Further
There has also been a moderation in the price of fresh food, going from 9.2% to 7.8%, as well as a drop of two tenths in the so-called underlying inflation, which is what leaves out energy prices, food, tobacco and alcohol because they have a more volatile behavior. Thus, it has gone from 5.5% last month to 5.3%, the level at which it was in May.
That is the rate that the European Central Bank (ECB) has as a reference when establishing monetary policy through interest rates, which currently stand at 4.25%. The institution headed by Christine Lagarde has set itself the goal of price developments standing at 2%, but the record wage rise in Germany is leading to a possible increase in interest rates by the ECB at the meeting on September 14th.
After having been one of the largest in the EU with the highest levels of inflation, with eight points more than now, Spain is now leading the relaxation of prices with a rate well below half the European average. Germany loses one tenth and stands at 6.4%; while Italy fell almost one point in August to stand at 5.5%. On the contrary, France increases six tenths and goes from 5.1% to 5.7%.
On the contrary, the most intense rises in prices were in Slovakia (9.6%), ahead of Croatia (8.5%) and Austria (7.6%).
The data revealed by Eurostat also reveal an all-time low for unemployment in the EU, standing at 5.9%, a figure identical to that of the month of June, and two tenths below last year.
In this case, Spain continues to be the country with the most unemployment in Europe, although it is at a historical record of employability with more than 21 million workers in the labor market. The rate stands at 11.6%, more than one point lower than the previous year (12.7%). It is followed by Greece (10.8%), which has also experienced a significant drop (12.5% in July 2022).
