Eurostat has just announced that the eurozone’s July inflation set a new record of 8.9%.
Inflation of the eurozone recently continuously peaked due to the impact of the Russia-Ukraine conflict and economies reopening after the blockade because of Covid-19. The consumer price index (CPI) of the eurozone increased by 8.6% in June and 8.1% in May.
In Germany, inflation was 7.5% in July, well above the European Central Bank’s 2% target. In Spain, inflation reached a 38-year high, with 10.8%.
Eurostat also today announced the eurozone’s second quarter GDP. Accordingly, the eurozone economies grew by 0.7%, much higher than analysts’ forecast of only 0.2%. In the first quarter, the increase was 0.5%. These figures come as a surprise to many amid soaring food and energy prices in Europe.
Europe today also receives a series of economic reports from other countries. The rebound in tourism has boosted the French and Spanish economies. However, the export powerhouse, Germany, slowed down.
GDP in Europe’s largest economy barely increased in the second quarter, due to “tough” global economic conditions, according to German federal statistics agency Destatis. The impact of “Covid-19, supply chain disruptions and hostilities in Ukraine have clearly reflected on short-term economic developments,” Destatis explained.