In the latest Eurostat publications, euro area inflation in July is estimated at 8.9% year-on-year, up from 8.6% in June. This is a new record for the 19 countries that use the single currency (pending ).

All the main components of inflation are on the rise. Food, alcohol and tobacco (9.8%, compared to 8.9% in June), industrial goods excluding energy (4.5%, compared to 4.3% in June) and services (3.7%, compared to 3.4% in June) are up. The annual rate for energy is down, but still very high at 39.7% in July compared to 42% in June.

With inflation estimated at 9.3% in July, Luxembourg did better than expected (-1.3%) and remains among the countries with the lowest inflation, along with Malta, France, Finland, Italy and Germany in the same order. At the other end of the spectrum are Ireland (22.7% estimated inflation in July compared to 2.2% in July 2021), Latvia (21% estimated inflation in July compared to 2.8% in July 2021), and Lithuania (20.8% estimated inflation in July compared to 4.3% in July 2021).

The reasons for this upward trend are diverse, ranging from the war in Ukraine and its geopolitical consequences for energy supply to the tense logistical situation in Asia due to the economic recovery from the health crisis.

On the other hand, the Eurozone managed to maintain its economic growth despite the unfavourable context. Again, according to the latest Eurostat figures, economic growth in the Eurozone did better than expected with GDP growth of 0.7% in the second quarter compared to the previous quarter.

This article on Paperjam and has been translated and edited for Delano.