Inflation eases in Europe for first time in 17 months, but still in double digits
The consumer price index was down from 10.6% in October, the European Union statistics agency Eurostat said Wednesday. That is the first decrease since June 2021. But the double-digit figure reflected prices for food, alcohol and tobacco rising faster, at a pace of 13.6% annually.
- Economy
- AP
- Published Date: 01:15 | 30 November 2022
- Modified Date: 01:18 | 30 November 2022
Inflation in the 19 countries that use the euro currency eased to 10% this month as fuel and utilities drifted down from painful highs, but it is near the record levels that have robbed consumers of spending power and led economists to predict a recession.
The consumer price index was down from 10.6% in October, the European Union statistics agency Eurostat said Wednesday. That is the first decrease since June 2021. But the double-digit figure reflected prices for food, alcohol and tobacco rising faster, at a pace of 13.6% annually.
Energy prices slipped to a 34.9% rate of increase, down from the astronomical 41.5% in October.
Out-of-control inflation is being fed by high energy prices caused by Russia cutting off natural gas over the war in Ukraine as well as bottlenecks in supplies of raw materials and parts and rebounding demand after the removal of COVID-19 pandemic restrictions.
Inflation has hit other economies but has taken a particularly high toll in Europe because of its dependence on Russian natural gas, which exporter Gazprom has reduced to a trickle. European leaders say it's energy warfare due to Europe's support for Ukraine.
- Higher food prices worsen hunger crisis this holiday season
- Billions in EU funding for Hungary should be frozen, says commission
- HSBC shuts more UK branches as banking goes online
- Britain sanctions Russian officials who enlisted criminals to fight
- German gas importer Uniper seeks damages from Gazprom