The inflation rate in the euro area rose sharply in August, reaching three percent and reaching its highest level in almost ten years. This was stated today by the statistical office Eurostat in its quick estimate. Price growth thus significantly exceeded the long-term goal of the European Central Bank (ECB), which is at two percent.
In July, inflation in the euro area was 2.2 percent. Data for the whole of the European Union are not included in the estimate, the office will publish them in mid-September.
Last August, when the eurozone economy was hit hard by the constraints associated with the coronavirus pandemic, inflation turned negative, to minus 0.2 percent. Since the turn of the year, inflation has been rising steadily and in the eighth month, it has climbed the highest since autumn 2011.
The ECB has previously stated that it expects further inflation to rise. However, according to her, it will be caused only by temporary factors, so the central bank does not intend to change its supportive monetary policy.
The significant acceleration in price growth in August was mainly due to energy prices, which rose by 15.4 percent, while in July their growth was 14.3 percent. However, prices of non-energy industrial goods also rose faster, rising by 2.7 percent, while in July they rose by only 0.7 percent. The growth of prices of food, alcohol, and tobacco products also picked up, reaching two percent compared to 1.6 percent in July. Prices of services increased by 1.1 percent, which is two-tenths of a point more than in July.