Economists forecast a 3.5% peak in the coming months
Inflation across the eurozone reached its highest point in nearly a decade, increasing pressure on the European Central Bank, lowering the proportion of bond buying programs.
Behind the recovery, the eurozone consumer price index rose 3% compared to a year ago in August, up from 2.2% in July. This increase exceeded the expectations of the majority of economists.
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The last time the consumer price index rose rapidly was in November 2011, shortly after the central bank raised interest rates on the bloc.
Prices have skyrocketed since the eurozone emerged from the lockdown.
The rise in energy prices and supply bottlenecks have caused upward pressure, along with weaker numbers from the year before the rise was even more severe.
Price increases could continue in the coming months as economists forecast a peak of 3.5%.
“The impact of reopening and supply issues could intensify in the coming months. But as global consumption and trade patterns return to something like their pre-pandemic norms, they will be in the coming year. It seems it will begin to decline,” Capital Economics said in a note.
“The headline rate fell to about 2% in January, and trends will fall through 2022, with the next year falling to about 1%,” he added.
