Eurozone inflation is the highest since records began, according to the EU
Not looking good is it, but you won't hear anything about it from the BBC, ITV and Sky.
Eurozone countries now have double-digit inflation — the latest figures
Yesterday’s flash figures from the EU’s statistics agency make for interesting reading if you are a Brexiteer. Inflation in the supposedly mighty Eurozone averaged 10% in the year to September — the highest in the 25 years since records began.
As if this weren’t enough to cheer up Liz Truss after a tough week, the pound has recovered almost all of its lost ground since Kwasi Kwarteng’s mini-budget just over a week ago, and in addition yesterday the ONS revised its GDP figures to show the UK economy grew last quarter, instead of falling as it had previously said.
Remember when leaving the EU was supposed to result in the UK’s economy falling off a cliff? Well, we are navigating choppy waters as a result of Covid and the energy crisis, but the UK economy compares favourably with most EU countries. However, you would not know as the like of the BBC ITV Sky and its so-called journalists will not tell you or show you.
Yesterday’s economic figures from the EU
- More than half of all Eurozone countries now have double-digit inflation
- In three of these, inflation is running at over 20%
- Even the EU’s economic powerhouse Germany is now at 10.9%
- Highest Eurozone inflation figures for 25 years, since records began
- Germany’s economy has flat-lined, with a recession forecast
[Sources: EU’s statistics agency Eurostat | Germany’s statistics agency Destatis.]
Estonia 24.2 %
Lithuania 22.5
Latvia 22.4
Hungary 18.6
Czechia 17.1
Netherlands 17.1
Bulgaria 15.0
Poland 14.8
Slovakia 13.6
Greece 12.1
Belgium 12.0
Germany 10.9
Slovenia 10.6
Portugal 9.8
Italy 9.5
Spain 9.3
Cyprus 9.0
Luxemburg 8.8
Ireland 8.6
Finland 8.4
Malta 7.3
France 6.2
What is driving these runaway prices?
The countries with the highest inflation rates generally have or had a high dependence on Russian gas, oil, and coal. Countries such as France have always relied far more on nuclear power. In addition, the French government has a history of large subsidies and state aid.
Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in September (40.8%), followed by food, alcohol and tobacco (11.8%).
Liz Truss’s and Kwasi Kwarteng’s nightmare week improves
Much was made of the fall in the value of the pound during the week since the Chancellor’s mini-budget.
Most of this fall has now been recovered, as the markets digest the news that the UK’s economy did not contract in Q2, as had been reported by the Office for National Statistics. In fact, it grew, confounding all the ‘experts’. The ONS issued a correction yesterday (30 Sept 2022). Not that you would know as it was not reported by the BBC ITV SKY
Firstly, it is not in the UK’s economic interests for the EU’s economies to be in trouble. I certainly wish them well.
That said, readers in the UK have been bombarded with terrible news all week, propagated by most of the media. With not a mention of what is going on in the which I find deplorable, its as if they want you to think what we are seeing is just going on in the UK alone
The report above attempts to provide some context, showing that inflation is surging across Europe and that the temporary fall in the value of the pound against the dollar has proved to have been overblown.
Ordinary people versus market traders
In regard to the exchange rate, I read reports that people were cancelling their plans to holiday in the USA as the drop in the pound made these unaffordable.
Those who work in the financial markets look at changes of small fractions of a cent. Ordinary people are more interested in the overall picture.
The simple fact is that the dollar is strong mostly as a result of the Fed’s aggressive rate rise policy. Investors go where they can get the highest returns, which means more demand for dollars, a higher dollar, and a lower pound and euro.
Yes, the pound has steadily been declining against the dollar over time, but so have the currencies of other European countries, and I tell you this, the US has been printing trillions of dollars to offset Covid, its never a good thing to do as it raises inflation and the Dollar and the US will crash and burn eventually
Today this is the state of the Dollar and the pound and the Euro
We’re in choppy waters, certainly, but let’s not talk ourselves down. because Germany the showboat of the EU is far worse choppy waters, in fact, they are in stormy waters that will turn into a hurricane of epic proportions.
Germany’s inflation rate increased to a record 10% in September. The news comes after economic institutes predicted that the economy will shrink next year.
Inflation ‘time bomb’: Food and energy prices soar in Germany
The Ukraine war has had repercussions around the world. In Germany, people are fearing for their prosperity.
As prices rise, more Germans turn to local food banks
[ Sources: EU Commission | German statistics agency | Bank of England ]
