Inflation in the eurozone stood at 3 percent on an annual basis in August, the highest level since 2011. In July inflation was still 2.2 percent. The European Eurostat statistics office Tuesday.
Higher energy prices in particular are driving inflation. But food and services have also become more expensive. Inflation is being watched with interest in the financial markets, because if it rises sharply, the European Central Bank (ECB) may be inclined to reduce the corona support measures and raise interest rates sooner. During the corona crisis, the ECB pumped hundreds of billions of euros into the economy.
The ECB’s target is inflation of just under 2 percent. The rise in the price level has been well below this for years, but inflation has risen in recent months. This was partly due to the gradual relaxation of corona measures in Europe. Consumers spent their hoarded money. The US economy also had an impact on inflation, fueled by the billions pumped into the economy by President Joe Biden’s administration. Shortages of chips and personnel also drove up prices.