EU Inflation surges 3% In August, Far Exceeding Expectations

Consumer prices in the eurozone are projected to rise in August to 3% higher than the European Central Bank’s 2% target, the bloc’s statistics office announced on Tuesday.

Among the main components of euro-area inflation, energy is expected to have had the greatest annual rate in April with 15.4%, compared to 14.3% in July, according to the flash estimate by Eurostat.

This was followed by non-energy industrial goods (2.7%, compared with 0.7% in July); food, alcohol, and tobacco (2%, compared with 1.6% in July); and services (1.1%, compared with 0.9% in July).

In August, the highest complete set of harmonized indices of consumer prices (HICP) rate was posted by Estonia at 5%, while Malta saw the lowest with 0.3%.

The inflation figure in Germany, the euro zone’s largest economy, is projected to see 3.4%.

France is expected to see 2.4%, Spain 3.3%, and Italy 2.6%.

The euro area/eurozone represents member states that use the euro as their single currency.​​​​​​​