The massive price increase, mainly due to high energy prices, is already being felt in almost every area of everyday life: and this is also reflected in consumer confidence in the eurozone. According to a recent survey in July, this is not only worse than when the corona pandemic broke out – it is in fact the lowest level since data collection.
The consumer climate barometer dropped 3.2 points to minus 27.0 points, according to a European Commission survey published on Wednesday. This is the lowest level since the beginning of data collection.
Economists polled by Reuters had expected a slight decline to minus 24.9 points. The level of the barometer remains below the long-term average.
High inflation slows down consumption
One of the reasons for the poorer mood is probably the sharp rise in consumer prices. Goods and services rose by an average of 8.6 percent in the eurozone in June compared to the same month last year, making it stronger than ever.
Inflation is now more than four times higher than the ECB target of 2.0 percent, which it considers optimal for the economy. It should respond to this on Thursday and raise interest rates for the first time since 2011.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
