According to a new estimate by the Statistical Office of the European Union (Eurostat), the inflation rate in the countries of the European single currency (euro) reached a record level, from 8.1 percent in May to 8.6 percent in June.
The price hike is primarily driven by energy prices reaching 41.9 percent compared to June last year. Food, liquor and tobacco prices rose to 8.9 percent from 7.5 percent in May.
The Baltic countries (Estonia, Latvia and Lithuania) have been hardest hit in the 19-member Eurozone. Estonia now has an inflation rate of 22 percent, followed by Lithuania at 20.5 percent and Latvia at 19 percent. Inflation is 10 percent or higher in six other eurozone countries, including Luxembourg, Belgium and Spain. Germany’s inflation rate stood at 8.2 percent, up from 8.7 percent in May.
The unemployment rate in Europe fell to 6.6 percent in May, after 6.7 percent in April, according to the announcement of “Eurostat” on Thursday, the inflation results came to reach a new record level.
The index is at its lowest monthly level since the European Statistics Office began compiling these figures in April 1998. Across the EU as a whole, the unemployment rate fell to 6.1 percent in May, also the lowest level.
The labor market benefited from the strong recovery of the European economy that began in the spring of 2021 and clearly recovered after the slowdown associated with the “Covid-19” pandemic. Europe’s growth forecast has been cut sharply, inflation is on the rise… but the repercussions of this deterioration are not yet visible in employment figures.
In May, Brussels cut its forecast for GDP growth in the euro area for 2022 by 1.3 points to 2.7 percent, and inflation expectations rose by 3.5 points to 6.1 percent compared to figures reported on February 10th (February). Beginning of the Russian offensive.
The unemployment rate fell in May by 1.5 points in the euro area and by 1.2 points in the EU as a whole on a year-on-year basis. However, about 13.07 million men and women are unemployed in the 27 member states, including 11 million in the 19 countries that share the common currency.
Spain (13.1 percent), Italy (8.1 percent) and Sweden (7.7 percent) reported the highest unemployment rates in the EU in May. In France, 7.2 percent of the population was unemployed, according to Eurostat data.