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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