Inflation hits 9.1% in countries using euro currency

Aug 31, 2022, 2:08 AM | Updated: Sep 1, 2022, 4:20 am
FILE - A cashier changes a 50 Euro banknote with US dollars at an exchange counter in Rome, Wednesd...

FILE - A cashier changes a 50 Euro banknote with US dollars at an exchange counter in Rome, Wednesday, July 13, 2022. Inflation for the European countries using the euro currency hit another record in August, fuelled by soaring energy prices mainly driven by Russia's war in Ukraine. Annual inflation in the eurozone's 19 countries rose to 9.1% in August, up from 8.9% recorded in July. That's according to the latest figures released Wednesday, Aug. 31, 2022 by the European Union statistics agency. (AP Photo/Gregorio Borgia, File)

(AP Photo/Gregorio Borgia, File)

LONDON (AP) — Inflation in the European countries using the euro currency hit another record in August, fueled by soaring energy prices mainly driven by Russia’s war in Ukraine.

Annual inflation in the eurozone’s 19 countries rose to 9.1%, up from 8.9% in July, according to the latest figures released Wednesday by the European Union statistics agency Eurostat.

Inflation is at the highest levels since record-keeping for the euro began in 1997. The latest figures add pressure on European Central Bank officials to continue raising interest rates, which can tame inflation, but also stifle economic growth.

Prices are rising in many other countries as Russia’s war in Ukraine grinds on, triggering unprecedented increases for energy and food that are squeezing household finances. Disruptions to global manufacturing supply chains caused by the coronavirus pandemic have also played a role in pushing up prices. This summer has seen a wave of protests and strikes around the world by workers pushing for higher wages and people fed up with the high cost of living.

Inflation in Britain, Denmark and Norway, which have their own currencies, is also surging, according to official data released earlier this month. U.K. residents face an 80% jump in annual household energy bills, regulators warned last week.

Inflation is also high in the U.S., adding urgency for the Fed to keep raising interest rates. Prices were up 8.5% in July compared with a year earlier, thought that was lower than 9.1% in June.

In the euro zone, energy prices surged 38.3%, though the rate was slightly lower than the previous month, while food prices rose at a faster pace of 10.6%, according to Eurostat’s preliminary estimate. The agency’s final report, released about two weeks later, is usually unchanged.

“Specific European problems continue to push inflation higher,” ING Bank senior economist Bert Colijn wrote in an analyst note. “The gas supply crisis and droughts are adding to persisting supply-side pressures on inflation at the moment.”

Russia, a major energy producer, has been reducing the flow of gas to European countries that have sided with Ukraine in the war, a move that’s wreaked havoc with prices.

At the same time, nearly half of Europe has been afflicted by an unprecedented drought that’s hurting farm economies, crimping production of staple crops like corn, and driving up food prices.

Price rises for manufactured goods like clothing, appliances, cars, computers and books accelerated to 5%, and the cost of services rose 3.8%.

The euro’s weakness is another factor keeping prices high. The currency has slipped below parity with the dollar, which can make imported goods more costly, particularly oil, which is priced in dollars.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Associated Press

Officers: Wellness check leads to fatal shooting in Florida

ST. PETERSBURG, Fla. (AP) — A police officer fatally shot a man early Sunday while conducting a wellness check at a home in St. Petersburg, officials said. Just before 4 a.m. Sunday, St. Petersburg police officers responded to a report of a hit and run. Officers found the bumper of the suspect’s car at the […]
12 hours ago
FILE - Jon Batiste attends the TIME100 Gala celebrating the 100 most influential people in the worl...
Associated Press

Jon Batiste to sing for Macron at Biden’s 1st state dinner

NANTUCKET, Mass. (AP) — Musician Jon Batiste is on tap to perform at President Joe Biden’s first White House state dinner on Thursday, highlighting long-standing ties between the United States and France and honoring President Emmanuel Macron. “An artist who transcends generations, Jon Batiste’s music inspires and brings people together,” said Vanessa Valdivia, a spokesperson […]
12 hours ago
Fans from the United States cheer for their team during the World Cup group B soccer match between ...
Associated Press

US-England World Cup game seen by 19.98M on US television

NEW YORK (AP) — The United States’ 0-0 draw against England in the World Cup drew 19.98 million viewers for English- and Spanish-language broadcasts, the third-most watched men’s soccer game on U.S. television. The match, which kicked off at 2 p.m. EST on Friday, was seen by 15,377,000 viewers on Fox, the most for a […]
12 hours ago
FILE - Chickens walk in a fenced pasture at an organic farm in Iowa on Oct. 21, 2015. Nebraska agri...
Associated Press

Bird flu prompts slaughter of 1.8M chickens in Nebraska

OMAHA, Neb. (AP) — Nebraska agriculture officials say another 1.8 million chickens must be killed after bird flu was found on a farm in the latest sign that the outbreak that has already prompted the slaughter of more than 50 million birds nationwide continues to spread. The Nebraska Department of Agriculture said Saturday that the […]
12 hours ago
This image released by Disney shows a scene from the animated film "Strange World." (Disney via AP)...
Associated Press

Feast and famine for Disney at Thanksgiving box office

Thanksgiving often serves up a feast of new family movies at the box office, but the Walt Disney Co.’s animated offering ” Strange World ” fizzled with audiences out of the gates. The production, which carried a reported $180 million budget, grossed just $18.6 million in ticket sales in its first five days and $11.9 […]
12 hours ago
A youth uses his smartphone as he and a friend walk along the Malecon seawall in Havana, Cuba, Frid...
Associated Press

Cuba’s informal market finds new space on growing internet

HAVANA (AP) — In the Telegram group chat, the messages roll in like waves. “I need liquid ibuprofen and acetaminophen, please,” wrote one user. “It’s urgent, it’s for my 10-month-old baby.” Others offer medicine brought from outside of Cuba, adding, “Write to me in a direct message.” Emoji-speckled lists offer antibiotics, pregnancy tests, vitamins, rash […]
12 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Prep the plumbing in your home just in time for the holidays

With the holidays approaching, it's important to know when your home is in need of heating and plumbing updates before more guests start to come around.
...
Quantum Fiber

Stream 4K and more with powerful, high-speed fiber internet

Picking which streaming services to subscribe to are difficult choices, and there is no room for internet that cannot handle increased demands.
...
Quantum Fiber

How high-speed fiber internet can improve everyday life

Quantum Fiber supplies unlimited data with speeds up to 940 mbps, enough to share 4K videos with coworkers 20 times faster than a cable.
Inflation hits 9.1% in countries using euro currency