Energy Prices Push Eurozone Inflation to 3.3%
BRUSSELS: Inflation in the eurozone rose sharply in August, reaching its highest level since September 2023 as energy prices continued to climb, according to a flash estimate released by Eurostat on Tuesday.
Annual inflation increased to 3.3 percent from 2.9 percent in July. The latest figure is well above the European Central Bank’s medium-term target of 2 percent. Consumer prices also rose by 0.4 percent compared with the previous month.
Energy costs were the main force behind the increase. Annual energy inflation jumped to 14.3 percent in August, up from 10.3 percent in July. On a monthly basis, energy prices increased by 2.9 percent, adding fresh pressure to households and businesses already struggling with higher living costs, according to Anadolu Agency.
Prices for non-energy industrial goods also rose, with annual inflation in the category reaching 1.2 percent, compared with 0.9 percent a month earlier.
However, not every part of the economy moved in the same direction. Services inflation eased to 3 percent from 3.3 percent, while inflation for food, alcohol and tobacco remained unchanged at 1.2 percent.
Core inflation, which excludes the more volatile prices of energy, food, alcohol and tobacco, edged down slightly to 2.4 percent from 2.5 percent. Inflation excluding energy alone remained stable at 2.2 percent.
The figures varied widely across euro-area members. Lithuania recorded the highest annual inflation rate at 5.8 percent, followed by Cyprus at 5.2 percent and Bulgaria at 5.1 percent. Spain’s inflation rate rose to 4.5 percent, while Belgium recorded 4.2 percent.
Inflation stood at 3.2 percent in Italy, 2.9 percent in Germany and 2.7 percent in France. The lowest rates were reported in Estonia at 1.3 percent, Malta at 1.9 percent and Finland at 2.4 percent.
The data may add to pressure on European policymakers as they weigh the need to control prices while protecting economic growth. For millions of consumers, the figures point to another month of rising expenses, with energy once again at the heart of the problem.
