Eurozone: New record of inflation at 9.1% in August, +11.1% in Greece

Inflation in the Eurozone continued its rally in August, surpassing analysts’ estimates with a new record high of 9.1% from 8.9% in July, according to the initial data released today by Eurostat.

Analysts’ average estimates put the index at 9%.

The jump in energy prices remains dizzying, with an annual rate of 38.3% in August compared to 39.6% in July. This is followed by food, alcohol and tobacco (10.6% compared to 9.8% in July), non-energy industrial goods (5.0% compared to 4.5% in July) and services (3.8 % compared to 3.7% in July).

On a monthly basis, inflation rose 0.5% in August, data from the European Statistical Office showed.

The structural index, which excludes energy and food, climbed to 4.3% in August from 4% in July.

According to Eurostat data, in Greece annual inflation slowed slightly to 11.1% in August, from 11.3% in July.

In Germany, the eurozone’s largest economy, inflation climbed to 8.8% in August from 8.5% the previous month, in France, the second largest, it slowed to 6.5% from 6.8%, while in Italy , the third largest, increased to 9% from 8.4%.

Estonia (25.2%), Lithuania (21.1%), Latvia (20.8%), Netherlands (13.6%), Slovakia (13.3%), Slovenia (11 .5%), Belgium (10.5%) and Spain (10.3%).

The data is expected to reinforce concern within the European Central Bank about inflationary expectations. Analysts are no longer ruling out an unusually large rate hike of 75 basis points by the ECB at its next meeting in September as part of its bid to rein in prices.

In July, the ECB raised interest rates by 50 basis points, although it had previously announced a 25 basis point increase, as central bank officials noted an increase in upside risks. The central bank noted at the time that the future course of interest rates would continue to be based on incoming data.