Eurozone inflation reached another 9.1% after food and energy prices increased

September 01, 2022: -Eurozone inflation reached a renewed record high of another 9.1%, according to flash figures from Europe’s statistics office Eurostat August, with high energy prices the major driving force.

Headline inflation in the eurozone reached 8.9% in July. The rate was above expectations, with a Reuters poll of economists anticipating a rate of 9%. The ninth consecutive record for consumer price elevations in the region, with the promotion starting in November 2021.

Energy had the highest annual inflation rate at 38.3%, Eurostat said Wednesday, down barely from 39.6% in July. Food, alcohol, and tobacco were up 10.6% and reached 9.8% in July, with the knock-on effects of current heatwaves across the continent donating to the increases.

Non-energy industrial goods, like clothing, household appliances, and cars, were up 5%, corresponding to the prior year, a 0.5 percentage point increase on the previous month, while services were up by 3.8% in price year by year, 0.1 percentage points more than in July.

Going down into national constitutions, the French inflation rate decreased to 6.5% in August, down from 6.8% in July. The speed was lower than anticipations, with economists surveyed by Reuters had anticipated a drop to 6.7%.

Spain released slowing inflation sculptures for August, at 10.3% year-on-year compared to 10.7% for July, according to the Eurostat flash estimate.

Meanwhile, Germany’s biggest economy witnessed inflation reach its highest level in almost half a century at 8.8% year on year in August.

Estonia currently has the highest inflation rate in the eurozone at 25.2%, followed by Lithuania (21.1%) and Latvia (20.8%). Malta and Finland pursue France with the lowest inflation rates, at 7.1% and 7.6%, respectively.