Inflation shoots up to 10.7% in the Eurozone with Spain as the second country with the lowest price increase

• The Spanish economy stops growing when it is still 2% below the pre-pandemic level

Inflation

a new

in the month of

, when prices were on average

higher than in the same month of the previous year.

, with a harmonized inflation of

in October, was the

, behind France, where the CPI rose by 7.1%, according to data published on Monday by Eurostat.

This is an unprecedented increase in inflation, which puts the

The institution that regulates the monetary policy of the euro zone

since the summer and, even so, this tightening of financing conditions has not had an effect for the time being.

Economists who defend that the inflation that Europe suffers is due to supply and not to demand, maintain that no matter how much they raise rates to cool down the economy -which could worsen the recession-, the ECB will not be able to contain inflation.

The institution chaired by

, however, is using

to try to fulfill its mandate:

which involves achieving stable inflation of around 2%, five times lower than the current rate.

Despite constant rate hikes

was 8.1% in May;

8.6%, in June;

8.9% in July;

9.1% in August;

9.9% in September and 10.7% in October.

Eurostat has explained that the main components that have pushed up prices in October have been

which would have increased

-the highest rate recorded-;

food

(+13.1%);

non-energy industrial products (+6%) and services (+4.4%).

Core

which excludes the price of fresh food and energy products, as they are the most volatile - stood at

-on-year in October, four tenths above the level of September.

terms , headline

inflation rose 1.5% in October compared to September, while core inflation rose seven tenths.

The countries with the highest inflation levels were

the Netherlands (16.8%), Slovakia (14.5%), Belgium (13.1%) and Italy (12.8%).

In Germany, inflation stood at 11.6%, compared to 10.9% in September;

while in Portugal it rose to 10.6% in October, from 9.8% in September.

growth stalls

Eurostat also advanced this Monday a preliminary estimate of the

which registered a

in line with that of Spain.

This implies a

on the continent, after GDP grew by 0.8% in the Eurozone and 0.7% in the EU in the second quarter.

"While the cracks in the Eurozone economy are clearly showing,

In

, it appears that this was mainly due to the later stages of the uptick in consumption, while in

consumption growth had already stagnated and investment was the positive surprise.

experienced a rapid slowdown in growth, but

analysts

.

They warn that "

consumer confidence is near record lows as real wage growth is at a multi-decade low right now.

"This weighs heavily on the consumer outlook, as retail sales have already trended lower in recent quarters. The reopening of economies boosted services, but that effect is now fading. With interest rates rising and the economic outlook uncertain, investment expectations are also weakening. Therefore,

warn.

The quarterly growth of 0.2% in Spain is in line with that registered in the average for the continent.

in the period were

(+0.7%) and

(+0.5%), while some countries have already seen their economy shrink:

In year-on-

terms , compared to the third quarter of 2021,

and 2.4% in the EU in the third quarter, slowing down considerably compared to the 4.3% rebound it had registered in the previous quarter in both zones.

Spain

the

only behind

, whose GDP rose by 4.9%.

The only country that decreases in year-on-year terms is Latvia, whose GDP contracted by 0.4% compared to the third quarter of 2021.

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