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Inflation hits 9.1% in countries using euro currency

Inflation in the European countries using the euro currency hit another record in August, fueled by soaring energy prices mainly driven by Russia’s war in Ukraine

Via AP news wire
Wednesday 31 August 2022 10:35 BST
Netherlands Rail Strike
Netherlands Rail Strike (Copyright 2022 The Associated Press. All rights reserved)

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Inflation in the European countries using the euro currency hit another record in August, fueled by soaring energy prices mainly driven by Russia’s war in Ukraine.

Annual inflation in the eurozone’s 19 countries rose to 9.1% in August, up from 8.9% in July, according to the latest figures released Wednesday by the European Union statistics agency Eurostat.

Inflation is at the highest levels since record-keeping for the euro began in 1997.

Prices are also rising in many other countries as Russia’s war in Ukraine grinds on, triggering unprecedented increases for energy and food that are squeezing household finances. This summer has seen a wave of protests and strikes around the world by workers pushing for higher wages and people fed up with the high cost of living.

Inflation in Britain, Denmark and Norway, which have their own currencies, is also surging, according to official data released earlier this month. Inflation is also high in the U.S., adding urgency for the Fed to keep raising interest rates. Prices were up 8.5% in July compared with a year earlier, thought that was lower than 9.1% in June.

In the euro zone, energy prices surged 38.3%, while food prices rose 10.6%, according to Eurostat's preliminary estimate. Prices for goods were up 5% and the cost of services rose 3.8%.

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