EU Inflation Accelerates to 3.4% in September as Energy Prices Soar to Record-Breaking Highs
Price pressures across the EU have jumped by the most in 13 years, as ongoing global supply bottlenecks and soaring energy prices kept inflation substantially elevated.
According to data obtained from Eurostat, prices across the EU rose 0.5% month-over-month to an annualized 3.4% in September, marking the highest reading since the economic crisis of 2008. Core inflation, which excludes volatile components such as food and energy, was up from an annualized 1.6% to 1.9% last month. Germany in particular, has seen its consumer prices skyrocket to 4.1%— the highest in almost 30 years.
The latest surge in inflation can be attributed to soaring energy costs across Europe, as renewable energy shortcomings and lack of supply pushed the price of various commodities including natural gas, oil, and coal to record-breaking hyperinflationary levels. The Dutch TTF, which serves as a benchmark of European natural gas prices, has hit a record eye-watering level of 100 euros per megawatt-hour, before retreating to around 93 euros.
The European Central Bank continues to reassure consumers and markets that inflationary pressures are merely temporary and will not continue through to 2022. However, some experts remain unconvinced, with BNP Paribas economist Luigi Speranza telling Reuters that “We think there are high chances that this inflation is less transitory than all central banks, including the ECB, are suggesting. Consumers may start demanding higher wages and corporations may accommodate them, on the basis they could pass on higher cost via higher final prices.”
Information for this briefing was found via Eurostat and Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
