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🇩🇰 Denmark /Economy & Trade

Higher Energy Prices Push European Inflation Sharply Higher

From Berlingske · () Danish

Translated from Danish and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire Named sources Ongoing story
  • Eurozone annual inflation increased to 3.3% in August from 2.9% in July, Eurostat’s preliminary estimate showed.
  • Higher energy prices drove most of the increase.
  • Dansk Metal chief economist Erik Bjørsted said oil prices rose from about $70 to more than $100 a barrel after war broke out between the United States and Iran.

Inflation in the eurozone rose markedly between July and August, with energy costs driving the increase, according to a preliminary estimate from the European Union’s statistics agency, Eurostat.

Annual inflation reached 3.3% in August, up from 2.9% in July. The increase followed a rapid rise in oil prices, which climbed from around $70 to more than $100 per barrel.

Before the war between the United States and Iran broke out, inflation was under control and close to the ECB's 2% target.

— Erik BjørstedThe Dansk Metal chief economist described conditions before the rise in oil prices.

Erik Bjørsted, chief economist at Dansk Metal, said inflation had been under control and close to the European Central Bank’s 2% target before war broke out between the United States and Iran. He said the resulting increase in energy prices pushed inflation higher.

But the oil price quickly rose from around $70 to more than $100 per barrel, and the higher energy prices pushed inflation up.

— Erik BjørstedBjørsted explained how energy costs contributed to the August increase.
About this summary

Originally published by Berlingske in Danish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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