In March, prices set a new all-time high in the eurozone, with annual inflation rising by 7.5%. This was announced this Friday by Eurostat, the EU’s statistical office, which released a preliminary estimate of price evolution last month, which continues to climb after the 5.9% recorded in February.
Analysis of key components of inflation in the euro area shows that energy reached its highest annual rate in March (44.7%, compared with 32% in February), followed by food, alcohol and tobacco (5%, compared to 4.2%). February).
It is followed by non-energy industrial goods (3.4%, compared to 3.1% in February) and services (2.7%, compared to 2.5% in February).
Thus, if we take the data minus energy, inflation rises to a much smaller scale, up to 3.4%. If processed food were excluded in addition to inflation, prices would have risen by 3.2%. Excluding energy, food, alcohol and tobacco, inflation remains at 3% in March.
If we consider the evolution of prices by countries, it can be seen that Lithuania has increased the most (15.6%), followed by Estonia (14.8%) and the Netherlands (11.9%). Spain is the fifth country where prices rose the most in March, at 9.8%.
Pressure for the ECB
European Central Bank President Christine Lagarde said in Cyprus on Wednesday that “the economic impact of the war is best reflected in what economists call a ‘supply shock’, which is a shock that simultaneously raises inflation and slows growth.”
Lagarde said energy prices will continue for a long time, with gas prices up 52% from the beginning of the year and oil prices up 64%. And the pressure on food inflation is likely to increase.
Russia and Ukraine account for almost 30% of global wheat exports, while Belarus and Russia produce about a third of the world’s potash, a key ingredient in fertilizer production, exacerbating supply shortages.
He also recalled that Russia is the world ‘s leading exporter of palladium, which is key to catalyst production. Meanwhile, Ukraine supplies about 70% of the world’s neon gas, which is essential for the production of semiconductors.
“Because the eurozone is a net importer of energy, rising energy prices mean a loss of consumer purchasing power,” Lagarde said.
Source: El Diario
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