(MENAFN) According to final data released on Friday by Eurostat, annual inflation in the eurozone stood at 8.5 percent in February, a slight dip from January's 8.6 percent but still well above 5.9 percent in February 2022. The main drivers of the inflation rate were food, alcohol, and tobacco, which had the largest contribution to the main reading (up 3.10 percentage points), followed by services (up 2.02 percentage points), non-energy industrial goods (up 1.74 percentage points), and energy (up 1.64 percentage points).
On a monthly basis, consumer prices increased by 0.8 percent in February. This increase in consumer prices may have been driven by rising costs of food, transportation, and housing, which have been impacted by supply chain disruptions and higher demand due to pandemic-related factors.
Annual consumer inflation in the EU was at 9.9 percent in February, edging down from 10 percent in January. The lowest annual inflation rates were in Luxembourg (4.8 percent), Belgium (5.4 percent), and Spain (6 percent), while the highest were in Hungary (25.8 percent), Latvia (20.1 percent), and the Czech Republic (18.4 percent).
The high inflation rate in the eurozone has raised concerns about the impact on consumers and the wider economy. High inflation can erode the purchasing power of individuals, reduce economic growth, and lead to higher interest rates. The European Central Bank has been closely monitoring the inflation rate and has indicated that it may take action to address the issue if it persists.
Overall, the high inflation rate in the eurozone is a cause for concern and highlights the need for policies to address the underlying factors driving the increase in prices. This may involve measures to address supply chain disruptions, increase investment in infrastructure and technology, and promote greater competition in the market.
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