In August, prices climbed 9.1 % in the countries of the single currency. Despite a slight slowdown in the south of the region, especially in France, the flambé continues.
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Inflation does not know any respite in the euro zone. In August, the price increase established at 9.1 %, compared to 8.9 % the previous month (and 3 % a year ago), according to data published on Wednesday August 31, by Eurostat, the European Statistics Agency. “Inflation will reach 10 % before the end of the year,” said Jack Allen-Reynolds, analyzes the Economics Capital Research Company. However, France experienced a slight respite in August: the increase in the harmonized price index (which allows European comparisons) was only 6.5 % in August, against 6.8 % in July. >
As since the start of this inflation, energy remains the main explanation of the increase (+ 38.3 % over a year, despite a slight reflux compared to July), while the progression in the ‘food, in the euro zone, exceeds the 10 % mark for the first time (+ 10.6 %). More worrying, a sign that the phenomenon spreads to all sectors, so-called underlying inflation (excluding food, tobacco, alcohol and energy, sectors that are more volatile) reaches 4.3 %, against 4 % in July ( and 1.6 % a year ago).
“Over a month, energy prices stagnated, following the drop in the barrel of oil, but it is probably only passenger, given the uncertainties on gas supplies, estimates Pushpin Singh , economist at the Cabinet Center for Economics and Business Research. With food inflation and the drought of this summer that strikes agricultural production, the prospects are dark for the euro zone. “
disparities between countries
Another trend, the rate of inflation tends to fragment within the euro zone. Baltic countries continue to experience an almost uncontrolled inflation, at more than 20 % (including 25 % in Estonia). The major countries in northern Europe are also in a strongly upward trend. Belgium (+ 10.5 %) and the Netherlands (+ 13.6 %) experience increases of more than 1.5 points, in August alone. Germany, the first economy in the region, recorded a price increase of 8.8 %, against 8.5 % in July.
On the other hand, some countries are experiencing a first reflux, thanks to the drop in oil prices during the summer. Among them, Greece, Portugal or Spain. France is also part of this group and remains the country of the euro zone where inflation is the less strong, thanks to the price shield, in particular. This one should continue to play full in the coming months, especially since the delivery on the price of fuel passes, Thursday 1 er September, from 18 cents to 30 cents of Euro per liter.
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