Inflation rate in July: price increase in the EU accelerates


Status: 08/18/2021 3:40 p.m.

The inflation rate in the EU has risen to its highest level since 2018. Germany’s prices are currently rising more strongly than the EU average. But other countries are at the forefront.

By Stephan Ueberbach, ARD-Studio Brussels

The prices for the cost of living have risen sharply again. According to the European statistics agency Eurostat, the inflation rate in the countries of the euro zone was 2.2 percent in July and even 2.5 percent in the entire European Union. This is the highest level since October 2018.

The number 1 price driver is still energy. Electricity, gas, heating oil and petrol were on average 14.3 percent more expensive than in July 2020. Consumers had to spend 1.6 percent more on food, tobacco products and alcohol than a year ago, and 0.9 percent more on services.

Highest rates in Estonia, Hungary and Poland

With a recent price increase of 3.8 percent, Germany is well above the European average – also due to the effect of the temporary VAT cut in the second half of 2020. The highest inflation rates have been recorded by statisticians in Estonia, Hungary and Poland, in Greece, Italy and Malta the cost of living, on the other hand, only increased slightly.

The European Central Bank is aiming for an inflation rate of two percent in the medium term. This is considered an ideal value for the development of the economy.

Prices rise sharply – inflation rate in Europe increased again

Stephan Ueberbach, ARD Brussels, August 18, 2021 2:23 p.m.

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August 18, 2021 • 8:52 pm

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