Inflation in the eurozone hit an all-time high in September, driven by the energy crisis and the consequences of the war in Ukraine. But it’s France that’s faring best, with a slowdown in consumer price inflation. We take stock
Inflation hits record high in Eurozone
Predictions were for 10% inflation in the Eurozone in September 2022. It will have finally reached an average of 9.9%, the highest level ever recorded for the economic region. The European Central Bank admitted a month ago that there were “severe risks” to financial stability, so the September figures confirm the trend.
The official document details the sectors that have been most affected. Unsurprisingly, the energy sector contributed strongly to the inflation rate, with +4.19%, followed by the “food, alcohol and tobacco” category (+2.47%), services (+1.8%) and industrial goods (+1.47%).
At the same time, the euro fell sharply against the dollar, reaching a level not seen for some twenty years:
The euro has fallen below the dollar in the last month
Has eurozone inflation peaked? No one knows, not even Christine Lagarde, who answered the question recently:
“Has it peaked? It’s hard to say and I’m not going to venture a guess. “
France among the best performing countries
Eurostat report details inflation rates for each eurozone country. France is doing best, with inflation at “only” 6.2%. It is followed by Malta (7.4%) and Finland (8.4%). The highest rates were recorded in Estonia (+24.1%), Lithuania (+22.5%) and Latvia (+22%).
While France is currently experiencing social movements that could converge, it is therefore benefiting from measured inflation compared to its European neighbours. A trend confirmed by INSEE, which reported a few days ago a slowdown in the rise of consumer prices.
In the face of this, the price of Bitcoin (BTC) continues to move in a range. But a range from which it could break out soon, according to several estimates. The next few months will tell us whether we will see a growing adoption of these assets as the euro struggles to maintain its price against the dollar.
