Inflation continues to spiral out of control throughout Europe.

RT:

Annual inflation in the Eurozone reached a record 8.9% in July, the latest data from the European Union’s statistics office Eurostat showed on Thursday.

The increase from 8.6% recorded in June is mostly down to energy prices, climbing steadily since the start of the year. The Consumer Price Index reached 7.4% in April and 8.1% in May.

Meanwhile, consumer prices in the 19 nations using the euro saw modest month-on-month growth of 0.1%.

Eurozone energy prices rose by 4.02% from June to July. Other key inflation drivers were food, alcohol and tobacco, which edged up 2.08%. Meanwhile, prices for services and non-energy industrial goods saw growth of 1.6% and 1.16%, respectively.

In July, the European Central Bank announced an interest rake hike for the first time in 11 years. The regulator vowed further interventions in the coming months, despite the risk of a recession.

The European economy is a disaster and it is only going to get worse. There are no serious policies being put into place to try to reverse this. Most European countries are continuing to go along with all the anti-Russian sanctions even though it is doing terrible harm to their own domestic economies. There’s already unrest spreading across the continent. The farmer protests in the Netherlands being the most prominent example.

Things are going to get really bad this winter. There’s going to be lots of people on the continent who won’t be able to afford basic necessities.

The U.S. Inflation Rate

The annual inflation rate in the US slowed more than expected to 8.5% in July of 2022 from an over 40-year high of 9.1% hit in June, and below market forecasts of 8.7%. Energy CPI rose by 32.9%, after hitting a 42-year high of 41.6% in June, mainly due to a big slowdown in gasoline costs (44% vs 59.9%), fuel oil (75.6% vs 98.5%), and natural gas (30.5% vs 38.4%) while electricity prices accelerated (15.2%, the most since February 2006). Cost also slowed for new vehicles (10.4% vs 11.4%) and airline fares (27.7% vs 34.1%). On the other hand, inflation continued to march higher for food (10.9%, the largest increase since May of 1979, vs 10.4%); shelter (5.7% vs 5.6%); and used cars and trucks (6.6% vs 1.7%). Compared to the previous month, the CPI was unchanged, after hitting a 17-year high of 1.3% and also below forecasts of 0.2%. Core inflation was steady at 5.9%, beating expectations of 6.1%, and offering some support that inflation has finally peaked. source: U.S. Bureau of Labor Statistics

 

Calendar GMT Actual Previous Consensus TEForecast
2022-07-13 12:30 PM Jun 9.1% 8.6% 8.8% 8.8%
2022-08-10 12:30 PM Jul 8.5% 9.1% 8.7% 9.1%
2022-09-13 12:30 PM Aug 8.5%

 

Related Last Previous Unit Reference
Inflation Rate 8.50 9.10 percent Jul 2022
Inflation Rate MoM 0.00 1.30 percent Jul 2022
Consumer Price Index CPI 296.28 296.31 points Jul 2022
Core Inflation Rate 5.90 5.90 percent Jul 2022
Core Consumer Prices 295.28 294.35 points Jul 2022
Producer Prices Change 9.80 11.30 percent Jul 2022
Export Prices 160.70 166.10 points Jul 2022
Import Prices 146.50 148.60 points Jul 2022
Food Inflation 10.90 10.40 percent Jul 2022
Services Inflation 6.25 6.22 Percent Jul 2022
Rent Inflation 5.70 5.61 Percent Jul 2022
Energy Inflation 32.93 41.62 Percent Jul 2022
Inflation Expectations 6.20 6.80 percent Jul 2022
CPI Median 6.27 5.95 percent Jul 2022
CPI Trimmed-Mean 6.99 6.93 percent Jul 2022
Pce Price Index 123.19 122.03 points Jun 2022
United States Inflation Rate
In the United States, unadjusted Consumer Price Index for All Urban Consumers is based on the prices of a market basket of: food (14 percent of total weight), energy (9.3 percent), commodities less food and energy commodities (19.4 percent) and services less energy services (57.3 percent). The last category is divided by: shelter (32.1 percent), medical care services (5.8 percent) and transportation services (5.5 percent).
Actual Previous Highest Lowest Dates Unit Frequency
8.50 9.10 23.70 -15.80 1914 – 2022 percent Monthly
1982-1984=100, NSA
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