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Eurozone Inflation Accelerates Further in August

By Maria Martinez

 

The annual rate of inflation in the eurozone accelerated in August, rising at the fastest pace in almost 10 years and staying around the 2% target set by the European Central Bank for the second consecutive month.

Consumer prices rose 3.0% on year in August, the fastest rate of growth since November 2011, according to a first estimate released Tuesday by Eurostat, the European Union’s statistics agency. Prices rose 2.2% on year in July.

The main driver of the on-year increase was energy prices which rose 15.4% on year, higher than the 14.3% increase registered in July.

Consumer prices rose 0.4% in August over the previous month, data from Eurostat showed.

The core consumer price index–which excludes the more volatile categories of food and energy–rose 1.6% on year in August, after rising 0.7% the previous month.

The acceleration in the eurozone’s annual rate of inflation adds further evidence to a buildup in price pressures globally as economies recover from the Covid-19 pandemic. Economists expect headline inflation to continue rising in the second half of the year, but to fall back below the ECB’s 2% target in 2022 and 2023.

 

Write to Maria Martinez at [email protected]

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