Annual inflation in the euro zone rose to 7% in April

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Annual inflation in the euro zone rose to 7% in April
A customer pays for vegetables in the Maravillas market, Madrid, May 12, 2022. (AP Photo/Manu Fernandez, File) (Manu Fernandez/)

The rate of annual inflation in the euro zone rose one tenth last Apriluntil the 7%according to data published this Wednesday by the community statistics office Eurostatwhich confirms his preliminary estimate and the rise in food prices.

For its part, the increase in prices in the European Union (EU) as a whole registered a two-tenths retracement to be in April in the 8.1%.

A year earlier, the inflation rate in the euro area was at the 7.4% while in the EU I was in the 8.1%.

The largest contribution to the annual inflation rate in the euro area last April came from the rise in the prices of processed foods, alcohol and tobacco, which was 2.75 percentage points in the last month.

Next came services (2.21 points), non-energy industrial goods (1.62 points) and energy (with an increase of 0.38 points).

People shop at a market in Versailles, on the outskirts of Paris, France, on July 3, 2022. (AP Photo/Christophe Ena, File)
People shop at a market in Versailles, on the outskirts of Paris, France, on July 3, 2022. (AP Photo/ Christophe Ena, File) (Christophe Ena/)

By country, the lowest annual rates were recorded in Luxembourg (2.7%), Belgium (3.3%) and Spain (3.8%) while the highest occurred in Hungary (24.5%), Latvia (15%) and czech republic (14.3%).

Compared to March, annual inflation fell in 22 Member States and increased in five.

Although core price growth, which has been the focus of policy makers in the European Central Bank in recent months, slowed slightly, the crucial component of the service sector continued to accelerate, pointing to a increased wage pressures that could place inflation above the target of the 2% set by the ECB.

Signs outside the European Central Bank (ECB) building in Frankfurt, Germany. July 21, 2022. REUTERS/Wolfgang Rattay/File
Signs outside the European Central Bank (ECB) building in Frankfurt, Germany. July 21, 2022. REUTERS/Wolfgang Rattay/File (WOLFGANG RATTAY/)

Inflation has been above the 2% target set by the ECB for almost two years, which has raised interest rates by 375 basis points since last July to curb the runaway growth of prices.

But more hikes are likely, as inflation will not return to target until 2025, and the “bottom rung” of disinflation, going from 3% to 2%, could be especially difficult, as it would take nearly 2 years.

(With information from EFE and Reuters)

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Source-www.infobae.com

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