Europe’s inflation rate hit a record high of 9.1% in August as energy prices continue to soar
across the continent.
According to flash data from Europe’s statistics agency, Eurostat, energy prices rose 38.3% in
August from a year earlier, down only slightly from 39.6% in July. Food, alcohol, and tobacco
prices increased 10.6% in August from a year ago.
The latest inflation reading was above economists’ expectations. According to a survey by the
Reuters news agency, economists had forecast that Europe’s August inflation rate would come
in at 9%.
August marks the ninth consecutive month that consumer prices in Europe have hit a new
record.
Prices for clothing, household appliances, and cars rose 5% compared to last year, while
service prices grew 3.8% year-over-year.
However, among European countries, the inflation rate in France decreased to 6.5% in August
from 6.8% in July. Spain’s inflation rate also declined, falling to 10.3% in August from a year ago
compared to 10.7% in July.
However, Germany, Europe’s biggest economy, saw its inflation rate reach its highest level in
nearly 50 years at 8.8% year-over-year in August.
Estonia currently has the highest inflation rate in Europe at 25.2%, followed by Lithuania
(21.1%) and Latvia (20.8%). Malta and Finland follow France with the lowest inflation rates, at
7.1% and 7.6% respectively.
The European Central Bank raised interest rates by 50 basis points to zero on July 21. It was
the first rate hike by the central bank in 11 years, and economists expect more interest rate
increases in coming months.
