Inflation was 3.0 per cent in August, driven in particular by higher energy prices.
Eurozone Inflation, ie the rise in consumer prices, accelerated markedly in August.
According to Eurostat’s preliminary data from Eurostat, the inflation rate was 3.0 per cent in August. It was 2.2 per cent in July and 1.9 per cent in June.
The most significant reason for the acceleration in inflation was also the rise in energy prices in August, which in turn is mainly due to rising crude oil prices. This, in turn, is the result of a strengthening economic cycle.
“The acceleration in inflation was expected. The rise in energy prices and the abolition of German VAT reductions boosted inflation. It is very possible that inflation in the euro area will be even faster in the coming months, ”says OP Financial Group Chief Economist Reijo Heiskanen.
In Germany, the largest economy in Europe, the inflation rate was 3.4 per cent in August, while in Finland it was 1.8 per cent.
In the euro area, inflation was last three per cent in autumn 2011.
Crude oil in the North Sea Brent reference grade cost $ 51 a barrel at the beginning of the year, but recently the price has been close to $ 73 a barrel.
Economists closely monitored core inflation was 1.6 per cent in August. The effect of energy and food on the change in price levels has been removed from core inflation. In July, core inflation was 0.7 per cent.
The European Central Bank has estimated that the acceleration in inflation will be temporary after the restrictions imposed to curb the coronavirus pandemic are lifted, vaccinations will progress and consumers will be able to start using their savings more freely during the pandemic.
Central Bank a new price stability target inflation in the euro area should be 2% over the medium term.
The price stability target is also symmetric: inflation may temporarily be faster or slower than the 2% target, as long as it is 2% over the medium term.
In its June business cycle forecast, the central bank estimates that inflation will accelerate to 1.9 per cent this year, but will slow to 1.5 per cent next year.