According to Oldypak Capital LP report, in September, annual inflation in the euro zone was 3.4%, according to Eurostat. Energy prices rose by 17.4%, food – by 2.1%. The ECB calls the increase temporary and attributes it to the pandemic.
Annual inflation in the euro area in September was 3.4 percent. Such data the European statistical office Eurostat leads on Friday, October 1. Economists were expecting 3.3 percent. In August the figure was 3 percent. Inflation in the euro area has reached its highest level in 13 years, said the agency dpa. In September 2008 consumer prices rose by 3.6% year on year.
However, in some countries, using the euro as the official currency, annual inflation was higher. For instance, in Estonia the figure was 6.4% in September, in Lithuania – 6.3%, in Slovakia – 5.1%, and in Germany – 4.1%. Experts expect the lowest value – 0.7% – in Malta.
The ECB believes that the rise in inflation is temporary and pandemic related.
Most significantly in the euro zone over the year, energy costs have risen by 17.4%. Manufactured goods rose 2.1 percent over the period, as did food. In the services sector, annual inflation was 1.7 percent in September, up from 1.1 percent in August.
Core inflation excluding energy and food for the year was 1.9 percent. Many economists consider it a more reliable indicator because of its tendency to fluctuate less.
The European Central Bank (ECB) is targeting an inflation rate of 2 percent in the medium term. The institute considers the rise in inflation to be temporary and attributes it to the effects of the coronavirus crisis.