OPINION
Market Rating Before FOMC MeetingJan 31
Euro Area inflation hit the all-time high
According to data released by Eurostat today, the consumer price index (CPI) in the Euro Area increased by 0.8 percent in June compared to the previous month, reaching an all-time high of 8.6 percent on an annual basis, in line with market expectations. During this period, the core CPI was 0.2 percent on a monthly basis and 3.7 percent on an annual basis, in line with expectations.
According to Eurostat, energy products increased by 3.4 percent, followed by food, alcoholic beverages and tobacco products at a level of 1.1 percent and non-energy industrial goods and services at a rate of 0.2 percent.
On annual basis, the largest contribution to inflation came from energy at a rate of 42.0 percent, food, alcoholic beverages and tobacco products at a rate of 8.9 percent, non-energy industrial goods at a rate of 4.3 percent, and services at a rate of 3.4 percent. Here, the fact that the energy group raised by 42.0 percent year-over-year was significant.
In June, the countries that experienced the highest increase in CPI on an annual basis were Estonia with 22.0 percent, Lithuania with 20.5 percent, Latvia with 19.2 percent and Czechia with 16.6 percent. Looking at the countries with the least increase, Germany was the first with 8.2 percent. CPI in Finland was 8.1 percent. In France and Malta, CPI was 6.5 percent and 6.1 percent, respectively.
The results indicate that energy remains the main driver of CPI in the Euro Area. In addition, it is clear that commodity prices caused by the Ukrainian war have also created food inflation. As a result of this, there is an increase in service inflation. In addition, the pressure on the European Central Bank (ECB) to increase the rates in July meeting, which will be held on Thursday, due to the all-time-high consumer inflation.
According to Eurostat, energy products increased by 3.4 percent, followed by food, alcoholic beverages and tobacco products at a level of 1.1 percent and non-energy industrial goods and services at a rate of 0.2 percent.
On annual basis, the largest contribution to inflation came from energy at a rate of 42.0 percent, food, alcoholic beverages and tobacco products at a rate of 8.9 percent, non-energy industrial goods at a rate of 4.3 percent, and services at a rate of 3.4 percent. Here, the fact that the energy group raised by 42.0 percent year-over-year was significant.
In June, the countries that experienced the highest increase in CPI on an annual basis were Estonia with 22.0 percent, Lithuania with 20.5 percent, Latvia with 19.2 percent and Czechia with 16.6 percent. Looking at the countries with the least increase, Germany was the first with 8.2 percent. CPI in Finland was 8.1 percent. In France and Malta, CPI was 6.5 percent and 6.1 percent, respectively.
The results indicate that energy remains the main driver of CPI in the Euro Area. In addition, it is clear that commodity prices caused by the Ukrainian war have also created food inflation. As a result of this, there is an increase in service inflation. In addition, the pressure on the European Central Bank (ECB) to increase the rates in July meeting, which will be held on Thursday, due to the all-time-high consumer inflation.
