The ECB prepares another rate hike of 0.5% despite the risk of recession

The evolution is striking. Only a year ago, inflation in the EU stood at 2.5%, seven points less than now. The increase is explained, above all, by the rise in energy prices, which cost 39.6% more than in July of last year, and fresh food, 11.1% more expensive than twelve months ago. But that all products have become more expensive is noticeable in the rise in underlying inflation (which excludes energy products and fresh food), which shot up to 5.1% in July, a new record in the EU. And although the average inflation of the EU does not reach – just barely – double digits, more than half of the countries that make up the EU (16 out of 27) exceed that threshold of 10%. The highest rates were recorded in Estonia (23.2%), Latvia (21.3) and Lithuania (20.9). But there are seven other eurozone countries with double-digit inflation: Slovakia (12.8%), Slovenia (11.7), the Netherlands (11.6), Greece (11.3), Spain (10 .7), Cyprus (10.6) and Belgium (10.4).