Eurozone – inflation rate up to 2.2 percent – economy

Inflation in the euro area rose sharply in July. Consumer prices have risen by 2.2% in one year, as the statistical agency Eurostat announced on Wednesday, confirming a first estimate. This is the highest inflation rate since fall 2018. In June, the increase in the cost of living in the community of 19 countries was still 1.9%. The main reason for this increase is the price of energy. The European Central Bank (ECB) is targeting an inflation rate of 2% in the medium term. He assumes that inflation will continue to rise this year. The peak is expected to be around three percent by the end of the year. From the point of view of the monetary authorities, however, the rise in inflation is a temporary phenomenon. Lower inflation rates are again expected for 2022. The ECB explains this, among other things, with special effects such as the temporary reduction of German VAT in 2020.

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