Euro Area Inflation Hits 10-Year High in August as Energy Prices Surge

Source: Eurostat

Eurozone inflation is likely to have accelerated to a decade-high in August, driven by higher prices of energy and industrial goods during the month.

• August inflation is expected at 3.0%, the highest since 2011. This compares with 2.2% in July and -0.2% in August 2020.
• Energy inflation is predicted to be the highest at 15.4%, up from 14.3% in July and -7.8% the same month last year.
• Prices of non-energy industrial goods are expected to climb by 2.7% this month, faster than July’s 0.7% and -0.1% in August 2020.
• Food, alcohol, and tobacco prices are predicted to have increased by 2.0%, up from 1.6% in July and 1.7% a year ago.
• Core inflation is expected at 1.6%. This compares with 0.7% in July and 0.4% in August 2020.
• Estonia is forecasted to have had the highest inflation this month at 5.0%, followed by Lithuania with 4.9%, Belgium with 4.7%, Latvia with 3.6%, and Luxembourg with 3.5%.
• The slowest rates are expected in Malta with 0.3%, Greece with 1.2%, Portugal with 1.3%, Finland with 1.8%, and Slovenia with 2.1%.