The escalation of prices has not stopped in the Eurozone for more than a year. According to Eurostat, the Interannual Consumer Price Index (CPI) for the euro zone rose two tenths in August from 8.9% in July, standing at 9.1%, new all-time high. The result matches market expectations.
In the European Union as a whole, the CPI reached 10.1% from 9.8% in July.
The lowest annual rates were recorded in France (6.6%), Malta (7.0%) and Finland (7.9%). The highest were in Estonia (25.2%), Latvia (21.4%) and Lithuania (21.1%). Compared to July, annual inflation fell in twelve Member States and rose in fifteen.
In August, the largest contribution to the annual rate of inflation in the euro area corresponded to energy (+3.95%), followed by food, alcohol and tobacco (+2.25%), services (+1.62%) and non-energy industrial goods (+1.33%).
Monthly inflation grew to 0.6% from 0.1% previously, exceeding the 0.5% expected.
The Annualized core CPI met expectations and reached 4.3%above the 4% of the previous month and reaching its highest level in the historical record.
EUR/USD Reaction
After falling to eight-day lows at 0.9945 at the European open, the EUR/USD it has recovered more than 15 pips after the publication of the inflation data, which despite the drop has been in line with expectations. The pair is now trading above 0.9970, losing 0.29% daily.
Source: Fx Street
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