In Germany and Spain, inflation still at the heart of concerns

In Germany and Spain, inflation still at the heart of concerns

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In many European countries, inflation has reached record levels, fueled by the war in Ukraine which has caused energy and food prices to soar, but also the tensions generated by the recovery of economic activity after the Covid-19 crisis. While across the Rhine, inflation is rising less than expected, it continues to rise in Spain.

With the economy department, Patricia Lecompte

In Germany, inflation rose less than expected year on year in June. This is indicated by the first estimate published on Wednesday by Destatis, the federal statistics office. According to the first estimate published on Wednesday by Destatis, the federal statistics office, inflation reached 8.2% in June over one year, against 8.7% in May. It is a relief for german consumersafter record year-on-year inflation in May, fueled by the war in Ukraine.

In Germany, consumer prices rose less than expected. Two government measures have made a real contribution to slowing the growth of consumer prices in Germany: the reduction in fuel taxes and the reduction in the cost of public transport. For some analysts, this is proof that it is currently governments and not central banks that can bring down inflation “. However, specialists urge caution, indicating that this is probably a respite rather than a turning point in inflation.

Another story in Spain

In Spain, inflation continued to rise and passed the 10% mark in June and reached its highest level for 37 years. As many European countries, Spain has been experiencing a rise in inflation for several months. It reached 10.2% in June over one year in the country. According to a first estimate by the national statistics institute, the INE, published on Wednesday, this is a very sharp rise in prices. If this figure is confirmed, it “ would mark an increase of one and a half points »Inflation at an annual rate compared to May, when it was 8.7%. According to the INE, this inflation rate of 10.2% is the highest since 1985.

Core inflation, which does not take into account certain prices, such as those of energy, and which is adjusted for seasonal variations, also increased to reach 5.5%, against 4.9% in May. Again, this is the highest level since August 1993.

In Spain, this inflation is fueled by rising fuel prices, food products and drinks, not to mention the increase in prices in restaurants and hotels. At the beginning of June, Madrid had anticipated this by announcing the maintenance of its anti-inflation measures until mid-September, such as fuel subsidies, an increase in the minimum subsistence income, and the extension of tax cuts intended to alleviate the electricity bills.

►Read also: Portugal: start of the annual forum of the European Central Bank against a background of inflation


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