Inflation in the euro zone climbs to another historical maximum in August and reaches 9.1%

Inflation in the euro zone climbs to another historical maximum in August and reaches 9.1%

New record. Inflation climbed 9.1% last August compared to the same month last year, according to preliminary data released this Wednesday by Eurostat, the statistical office of the European Union. In Spain, the general CPI falls compared to the record of this crisis of 10.8% in July, but the core index, which excludes energy prices and unprocessed food, grows 3 tenths, to a maximum of 6.4%, according to data published on Tuesday.

Thus, preliminary calculations by Eurostat forecast that inflation in the euro area will be 9.1% in August 2022, compared to 8.9% in July.

If the main components of inflation are analyzed, energy is expected to register the highest annual rate in August (38.3%, compared to 39.6% in July), followed by food, alcohol and tobacco (10.6 %, compared to 9.8% in July), non-energy industrial goods (5%, compared to 4.5% in July) and services (3.8%, compared to 3.7% in July).

Excluding those factors, core inflation rose to a new high of 4.3%, highlighting how price pressures continue to become more broadly based.

August thus becomes the month with the highest year-on-year inflation, after the increase in prices was 5.1% in January; 5.9% in February; 7.4% in March and April; 8.1% in May; 8.6% in June; and 8.9% in July.

euro-area #inflation up to 9.1% in August 2022: energy +38.3%, food +10.6%, other goods +5.0%, services +3.8% - flash estimate

— EU_Eurostat (@EU_Eurostat) August 31, 2022

This new rise in inflation is known a week before the European Central Bank meets again to increase interest rates, it is not yet known whether a quarter of a point or half a point more, after the rise of half a point at the end of July.

The biggest price rises since the euro was introduced more than two decades ago present ECB officials with a delicate balance: interest must rise enough to bring inflation to its 2% target, but not so much as to stifle the economic boost that may exist amid fears of a Russian power outage this winter.

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