Euro Area Inflation Rate2021 Data | 2022 Forecast | 1991-2020 Historical | Calendar

The Eurozone annual inflation rate was confirmed at 3.4 percent in September 2021, the highest rate since before the global financial crisis in September 2008 and well above the European Central Bank's target of 2.0 percent, raising concerns about the policymakers' narrative that recent price spikes are seen as temporary. Energy prices were responsible for almost half of the overall year-on-year inflation reading, rising by 17.6 percent in September after a 15.4 percent advance in August. Additional upward pressure came from services (1.7 percent vs 1.1 percent) and food, alcohol & tobacco (2.0 percent, the same as in August). Meanwhile, cost for non-energy industrial goods rose at a slower pace (2.1 percent vs 2.6 percent). The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco, climbed to 1.9 percent, the highest rate since December 2008.

The Eurozone annual inflation rate is expected to accelerate to 3.4 percent in September 2021, from 3.0 percent in the previous month and slightly above market expectations of 3.3 percent, a preliminary estimate showed. That would match the highest rate of inflation since before the global financial crisis in September 2008, raising concerns about the ECB's narrative that recent price spikes are seen as temporary and the economy requires depressed borrowing costs. Energy cost is seen accounting for much of the increase, rising by 17.4 percent in September after a 15.4 percent advance in August. Additional upward pressure should come from services (1.7 percent vs 1.1 percent) and food (2.1 percent vs 2.0 percent). Cost for non-energy industrial goods likely rose at a slower pace (2.1 percent vs 2.6 percent). The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco, climbed to 1.9 percent, the highest rate since December 2008.

The Eurozone annual inflation rate was confirmed at 3.0 percent in August 2021, highest since November 2011 and well above the European Central Bank's target of 2.0 percent. Still, several policymakers have been dismissing inflation pressures as temporary, while others voiced concerns about a quicker-than-expected increase in consumer prices, mainly reflecting a low base year due to the coronavirus crisis and a global supply squeeze. Energy cost accounted for much of the increase, rising by 15.4 percent in August after a 14.3 percent advance in July. Additional upward pressure should come from services (1.1 percent vs 0.9 percent), non-energy industrial goods (2.6 percent vs 0.7 percent), and food (2.0 percent vs 1.6 percent). The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco, climbed to 1.6 percent, the highest rate since July 2012.

The Eurozone annual inflation rate is expected to accelerate to 3 percent in August 2021, from 2.2 percent in the previous month and well above market expectations of 2.7 percent, a preliminary estimate showed. That would match the highest rate of inflation since November 2011, which could trigger some vigorous debate at next week's European Central Bank policy meeting. Prices have been rising due to a steady recovery in domestic demand and a low base year caused by the COVID-19 crisis. Energy cost is seen accounting for much of the increase, rising by 15.4 percent in August after a 14.3 percent advance in July. Additional upward pressure should come from services (1.1 percent vs 0.9 percent), non-energy industrial goods (2.7 percent vs 0.7 percent), and food (2.0 percent vs 1.6 percent). The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco, climbed to 1.6 percent, the highest rate since July 2012 but below the ECB's target of 2 percent.