Inflation in the eurozone rose to 3.4 percent on an annual basis in September, the highest level since 2008, the European statistical office Eurostat announced based on a preliminary estimate.
In August, inflation was still 3 percent. In particular, high energy prices are driving inflation, undermining consumers’ purchasing power.
Gas prices in Europe have risen to records. The prices of electricity and fuel for cars are also rising sharply. But also stimulants and certain services became more expensive. As a result, core inflation, excluding fluctuating prices for energy, food and tobacco, rose to 1.9 percent from 1.6 percent in August.
Every month, consumer prices in the euro area rose by 0.5 percent. In the eurozone, the highest inflation rate was measured in Estonia at 6.4 percent annually.
Inflation is now significantly higher than the 2 percent target set by the European Central Bank (ECB). Due to the sharp rise in inflation, the ECB may reduce its support measures against the corona crisis more quickly.
Earlier this week, ECB President Christine Lagarde said that care must be taken not to reduce support measures too quickly in response to rapidly rising inflation. However, she again stated that the inflation peak is temporary. “Once these pandemic effects are over, we expect inflation to subside,” said Lagarde.