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Because of the countries in the eurozone all have different economies, the situation in each one varies. While inflation in Germany and the Netherlands dipped slightly in June, Spain set a record, hitting double digits for the first time since 1985. For the three Baltic States in northeast Europe — Latvia, Lithuania and Estonia — prices that high have been a reality for months.
Estonia
Estonia recorded an annual inflation rate of 22 percent, the highest in the eurozone, followed by its neighbors on the Baltic Sea, Latvia (19 percent) and Lithuania (20.5 percent). The three countries lack any domestic energy sources and their efforts to replace Russian energy have left them exposed to the exorbitant prices on the spot markets.
France
By contrast to the Baltics, France has a diversity of energy sources, which has helped keep its inflation rate comparatively low, at 6.5 percent in June. Although several nuclear reactors have been taken offline recently, the country is overall less reliant on fossil fuels which has shielded it from the worst of the fallout from Russia’s war in Ukraine.
Spain
For the first time since 1985, the inflation rate in Spain soared into the double-digits, hitting 10 percent in June. The high price of energy is largely to blame, along with increases in the price of food. The government in Madrid passed a €9 billion euro ($9.45 billion) relief package, including subsidies for transport and a 80 percent reduction in taxes on energy, to help vulnerable households cope.
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