Euro Zone inflation soars to record 9.1 per cent as energy, food prices catch fire

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Euro Zone inflation soars to record 9.1 per cent as energy, food prices catch fire

On Friday, Eurostat data had unveiled that the Eurozone inflation had spiked to a record last month, mostly galvanized by a swift increase in prices of energy and foods. Besides, in the latest flashpoint of an unfathomable scale of angst between Kremlin and Brussels, EU adopted a measure to decrease Russian natgas imports, which in effect would likely to balloon energy prices further while ferrying the EU CPI to a double-digit figure in a near-term.

In tandem, Eurostat said that about an increase of 3.95 percentage point in Consumer Prices Index, was stemmed from a higher energy prices compared to the same time a year earlier, while surging cost of food, alcohol and tobacco accounted for a rise of 2.25 percentage points.

Nevertheless, according to Eurostat data, excluding the energy and food prices, CPI, the ECB’s core inflationary indicator, rose over 5.5 per cent on a year-on-year basis. On top of that, EU consumers are forking out over a 5.1 per cent more than what they had been paying off for industrial goods a year earlier, as an unswerving lobbying effort from an incumbent Biden Administration to sway EU away from Nord Stream II pipeline did create a deluge of fiscal catastrophe for import-oriented economies while sending EU inflation nearly a five-fold of ECB’s target of 2.0 per cent.

EU inflation rises to a record high

According to data from Eurostat, Consumer Prices in the bloc’s 19 countries sharing common currency Euro, rose 0.6 per cent in August compared to a month earlier. Besides, over past twelve months through August, Eurozone Consumer Prices Index jumped by a staggering 9.1 per cent, remarking the highest reading since creation of Euro back in 1999s.