Inflation in the Eurozone Exceeded Nine Percent in August

The first estimate shows that the growth of consumer prices in the 19 countries sharing the common currency, expressed by the Harmonized Index of Consumer Prices (HICP), accelerated again on an annual basis in August, reaching 9.1 percent, after a 8.9 percent increase in July.

Thus, inflation in the Eurozone has reached a new highest level since Eurostat began publishing reports in January 1996.

Compared to July, consumer prices in the Eurozone on average increased by 0.5 percent, according to Eurostat tables.

The main reason for the continuous strengthening of inflation remains the surge in energy prices, in the context of a six-month war in Ukraine and sanctions against Russia due to the invasion of the neighboring country, as well as increased uncertainty in Europe’s supply of Russian gas.

Energy prices in the month just ended in the Eurozone were thus 38.3 percent higher than in the same month last year, after having been 39.6 percent higher in July. On a monthly basis, they remained unchanged.

The growth of prices for food, alcoholic beverages, and tobacco products accelerated to 10.6 percent, up from 9.8 percent in July. On a monthly basis, it increased by one percent, according to the first estimates from the statistical office.

When excluding volatile energy and food prices, inflation accelerated again to 5.5 percent, up from 5.1 percent in July.

Baltic States Above 20 Percent

The Baltic States recorded the highest annual inflation rates in August, with prices in Estonia rising the most, by 25.2 percent. In Lithuania and Latvia, they increased by 21.1 and 20.8 percent, respectively.

Half of the Eurozone members are recording double-digit inflation rates, with the highest in the group with price increases ranging from 10 to 20 percent being recorded by the Netherlands and Slovakia, at 13.6 and 13.3 percent, respectively.

In Germany and Italy, the first and third largest European economies and important Croatian trading partners, prices increased by 8.8 and nine percent, according to the first estimates.

Ireland is close behind with an inflation rate of 8.9 percent.

Among other important Croatian trading partners, neighboring Slovenia records an inflation rate of 11.5 percent.

France had the lowest annual inflation in August, the second largest economy in the Eurozone, at 6.5 percent, according to the first estimates from Eurostat.