Eurozone inflation hits record high

Soaring energy prices remain the main driving force

Inflation in the Eurozone spiked to a record high of 9.1% in August, according to flash figures from Europe’s statistics office, Eurostat, published on Wednesday.

The indicator overshot analysts’ expectations of a 9% rate.

The price growth was driven largely by spikes in energy and food costs. Energy showed the highest annual inflation rate of 38.3%, down slightly from 39.6% in July. Food, alcohol, and tobacco were up 10.6% compared to 9.8% in July.

Prices on industrial goods, such as clothing, household appliances, and cars, were up 5% year-on-year, while the cost of services increased by 3.8% from last year.

August is the ninth consecutive month of record-high consumer price rises in the Eurozone.

Data shows that Germany, the region’s largest economy, posted its highest level of inflation in nearly half a century at 8.8%. Inflation in France reached 6.5% in August, while costs in Spain rose 10.3%. Estonia suffered from the highest inflation rate in the Eurozone at 25.2%.

READ MORE: EU country hit by worst inflation since 1970s

The surge in prices has prompted many analysts to warn of an imminent recession in the euro area. Experts also say that the European Central Bank is likely to introduce another interest rate hike in September, after it already increased rates for the first time in 11 years by 50 basis points last month.

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