Inflation in the euro area climbed to a 10-year high of 3 percent this month.
Economists had predicted that consumer prices in 19 countries using the euro would increase by 2.7 percent in August. Inflation was 2.2 percent in July, exceeding the ECB's inflation target of 2 percent.
INCREASE MAY NOT BE TEMPORARY
The data showed that there are realizations contrary to the view of the European Central Bank (ECB) that there will be no strong increase in consumer prices and that the increases will be temporary.
THE RISE OF ENERGY PRICES HAS BEEN EFFECTIVE ON THE INCREASED
According to the statement made by Eurostat, the statistical agency of the European Union (EU), the rise in energy prices as well as the sharp rise in food prices played a role. The Authority also stated that there were extraordinary increases in the prices of industrial products.
RISING EXPECTATION OF INFLATION IN THE GERMAN ECONOMY
The expectation that inflation will approach 5 percent in the coming months in Germany, the largest economy in the Eurozone and the country that criticizes the ECB the most, may force the bank to take a step towards inflation.
The ECB argues that the one-off factors created by the reopening of the economy after the coronavirus epidemic played an important role in inflation and that the increase in prices will quickly reach moderate levels in early 2022.
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