In June 2023, the inflation rate in the European Union was 6.4%. Prices rose most rapidly in Hungary, where the inflation rate was 19.9%. By contrast, the inflation rate in Luxembourg was only 1%, the lowest level in the EU for the month of June. The EU inflation rate in October 2022 was higher than at any other time, and the highest level before 2021 was recorded in July 2008, when prices rose by 4.4% over the year. Before the recent rise in inflation, price increases in the EU had remained relatively low. From January 2012 to August 2021, the inflation rate was below three per cent.

Rapid economic recovery and energy costs driving inflation

The recovery of the European economy in 2021 following the sudden C19 shock of 2020 lies at the root of many factors that led to such a rapid price increase in recent months. Global supply chains have not yet recovered from the production problems, travel restrictions and labour shortages caused by the pandemic. Rising energy costs have only exacerbated supply issues, particularly in the transport sector, which saw the highest inflation of all sectors in the EU in December 2021.

High inflation rates seen in the USA

The high inflation rates observed in Europe have also been reflected elsewhere in the world. For example, in the United States, the consumer price index reached a 40-year high of seven per cent in December 2021, influenced by many of the same factors driving inflation in Europe. However, it is hoped that once these supply chain issues ease, inflation rates will begin to fall throughout 2022.

Inflation in Europe. June 2023

https://www.statista.com/statistics/225698/monthly-inflation-rate-in-eu-countries/