Inflation Rose Sharply in the Eurozone

Inflation rose sharply in the Eurozone. Annual inflation in the region reached a 10-year peak of 3 percent.

According to Eurostat data, annual inflation in the 19-member Eurozone was 3 percent, above the forecast of 37 economists surveyed by Bloomberg. Inflation had increased by 2.2 percent in July. Monthly inflation was 0.4%, above the forecast of 0.2%. Core inflation reached 1.6 percent, the highest level since 2012. Core inflation had increased by 0.7 percent in the previous month. European Central Bank (ECB) officials consider the rise in inflation to be temporary. On the other hand, it is stated that the rise may continue for a while. Bank officials predict that the reopening of the economy after the pandemic is effective in the rise in inflation, and that price increases will moderate next year. The bank is expected to raise its short-term economic projections at its meeting on September 9. On the other hand, according to the data released today, inflation in France has reached the highest level with 2.4 percent since 2018, and in Italy with 2.6 percent since 2012.