Euro exchange | 9.1% is the inflation rate in countries using the euro.

Inflation in the euro-using nations of Europe reached another all-time high in August, pushed primarily by the war that Russia is waging in Ukraine.



LONDON (AP) — Inflation in the euro-using nations of Europe reached a new high in August, pushed primarily by surging energy costs as a result of Russia's conflict in Ukraine.


The 19 nations that make up the eurozone's annual inflation rate increased to 9.1% in August from 8.9% in July, according to the most recent estimates provided by the European Union statistics office Eurostat on Wednesday.


Since the Euro was introduced in 1997, inflation has never been higher. The most recent data puts more pressure on European Central Bank authorities to maintain interest rate increases, which can contain inflation but also hinder economic growth.

As Russia's war in Ukraine drags on, prices are rising in numerous other nations, leading to extraordinary spikes in food and energy prices that are straining household budgets. The coronavirus pandemic's impact on global manufacturing supply chains has also contributed to price increases. A wave of protests and strikes by workers seeking more pay and citizens fed up with the high cost of living have taken place this summer in many different countries.


According to official figures released earlier this month, inflation is also skyrocketing in countries with their currencies like Britain, Denmark, and Norway. U.K. Regulators warned last week that yearly household energy costs will increase by 80% households.

According to a preliminary estimate from Eurostat, the price of food increased at a quicker rate of 10.6% while energy prices in the eurozone increased by 38.3%, even if the rate was marginally lower than the previous month. About two weeks later, the agency issues its final report, which is typically unaltered.


Bert Colijn, the senior economist at ING Bank, stated in an analyst note that "specific European concerns continue to push prices higher" and "the gas supply crisis and droughts are adding to ongoing supply-side pressures on inflation at the moment."


Russia, a significant energy supplier, has been cutting off the supply of gas to European nations that have supported Ukraine in the conflict, which has had a disastrous impact on prices.

An unprecedented drought that is harming farm economics, limiting the supply of basic commodities like corn, and raising food prices is also affecting nearly half of Europe.


The cost of services increased by 3.8%, while price increases for manufactured products like clothing, appliances, cars, computers, and books surged to 5%.


Another reason keeping prices high is the weak euro. The currency has depreciated below parity with the dollar, which may increase the price of imported products, especially when oil is priced in dollars.


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