Inflation in the Euro zone reached a new record high of 9.1% in August, according to available report from Europe’s statistics office Eurostat, with high energy costs serving as the primary driver.
According to estimates issued Wednesday by the European Commission’s statistical office, the annual inflation rate in the 19 nations that use the euro as their currency reached a new high of 9.1 percent, up from 8.9 percent in July. Inflation reached 3 percent a year ago, which at the time represented a 10-year high and caused panic, but would now be met with great relief.
Wednesday, Eurostat reported that energy had the highest annual inflation rate at 38.3%, down marginally from 39.6% in July. Food, drink, and cigarette prices rose 10.6% compared to 9.8% in July, with severe heatwaves throughout the continent having contributed to the increase.
The price of non-energy industrial items such as apparel, household appliances, and automobiles increased by 5% year-over-year, a 0.5 percentage point rise from last month, while the price of services increased by 3.8%, 0.1 percentage points more than in July.
Estonia was most impacted, with an inflation rate that exceeded 25 percent, followed by Lithuania and Latvia. France was one of the few nations whose price index decreased in August, falling from 6.8 percent to 6.5 percent. In August, double-digit annual inflation was recorded in nine nations. Germany’s 8.8 percent was the highest, followed by Italy’s 9 percent and Spain’s 10.2 percent.
The study, which arrives a week before the European Central Bank is slated to convene, would likely bolster the idea that interest rates must be hiked again to limit inflation, despite the possibility of a recession.
