(MENAFN) On Friday, Oct. 1 a flash estimate released by Eurostat, the statistical office of the European Union (EU) showed that Euro area inflation speeded up to 3.4 percent year-on-year (y-o-y) last month, hitting a 13-year high.
Energy prices remained the key driver of inflation in the 19-member euro area, increasing by 17.4 percent y-o-y. Food, alcohol and tobacco, and non-energy industrial commodities prices all logged a 2.1 percent yearly expansion. Services price expansion speeded up to 1.7 percent in the past month.
During August, the annual inflation rate had already hit a ten-year record at three percent.
Even though inflation rates in the euro area are still mostly steered by temporary aspects, like high energy prices, the German value-added tax (VAT) reversal and a general increase in prices after the reopening of economies, there are indications that this high inflation rate could be more incessant than initially projected, stated Carsten Brzeski, global head of macro research at ING.
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