Inflation in the Eurozone has Peaked in 13 Years
OREANDA-NEWS. Annual inflation in the eurozone in September was 3.4%. Such data is provided by the European Statistical Office Eurostat on Friday, October 1. Economists had expected a value of 3.3%. In August, the figure was 3%. Thus, inflation in the euro area has reached it's highest value in 13 years, the dpa agency notes. In September 2008, consumer prices increased by 3.6% in annual terms.
However, in some countries using the euro as the official currency, annual inflation was higher. Thus, in Estonia, the indicator in September was 6.4%, in Lithuania — 6.3%, in Slovakia — 5.1%, and in Germany — 4.1%. Experts expect the lowest value — 0.7% — in Malta.
The most significant increase in the price of energy resources in the euro area over the year — by 17.4%. Industrial goods increased in price by 2.1% during this period, as did food. In the service sector, annual inflation in September was 1.7%, an increase compared to August (1.1%). Core inflation excluding energy and food for the year was 1.9%. Many economists consider it a more reliable indicator due to the tendency to smaller fluctuations.
The European Central Bank (ECB) is targeting an inflation rate of 2% in the medium term. The Institute considers the increase in inflation temporary and associates it with the consequences of the coronavirus crisis.