According to the European Union’s statistics office Eurostat on Wednesday, Euro area annual inflation is up to 9.9% in September, up from 9.1% in August. The inflation rate in September tapped a 40-year high, and investors suspect that the eurozone is “at risk of a financial meltdown.”
European Union’s Consumer Price Index Taps a 40-Year High, EU Residents Take to the Streets to Protest Scorching Inflation
Europe’s inflation has jumped a great deal since September 2021, according to the recent report published by Eurostat on Wednesday morning. “The euro area annual inflation rate was 9.9% in September 2022, up from 9.1% in August,” Eurostat’s September consumer price index (CPI) update notes. “A year earlier, the rate was 3.4%. The September 2022 European Union inflation rate was 10.9%, an increase from the August 10.1%. A year earlier, the rate was 3.6%,” the government agency’s report details.
Eurostat’s announcement follows the U.S. Bureau of Labor Statistics October 13th inflation report. For the US, inflation for September saw an 8.2% increase over the same period last year. The eurozone’s CPI follows the region’s fiat currency the euro struggling to compete with the U.S. dollar. A recent report published by Citi’s FX strategists says that the group of foreign exchange analysts suggest the euro could sink to $0.86 against the greenback if macro turmoil persists.
The rising cost of bread in Europe is being blamed on the increased cost of eggs and electricity. The New York Times reports that one in ten Belgian bakeries has shut down due to rising inflation. Some accountsParisians are protesting the high inflation by taking to the streets in their thousands.
Philipp Heimberger from the Vienna Institute for International Economic Studies notes that inflation is not only causing havoc around the world, but Europe is suffering the most. “Across the globe, inflation is primarily driven by energy prices and (energy-intensive) food prices in the context of supply chain issues,” Heimberger tweetedThis Wednesday Heimberger continued:
Europe has a strong supply factor impact.
Some observers believe that blamed the United States for allegedly being involved with the Nord Stream sabotage, which has caused Europe’s energy inflation to rise even higher. According to reports, there have been protestors from France and Paris as well. gathered in Germany, Austria, and GreeceWe also protested the high levels of inflation in the Eurozone.
For example, Germany’s inflation has increased to 10.9%. This is a record for the country and a new 25-year high. The eurozone’s inflation is so bad today, that global firms located in the region are starting to relocate “eastward in Europe in search of cost savings.” On the first of October, the Telegraph reported that market analysts believe the eurozone is at “risk of [a] financial meltdown” due to “surging inflation and higher rates.”
What do you think about the eurozone’s red-hot inflation rising in September? Comment below to share your thoughts.
Images CreditsShutterstock. Pixabay. Wiki Commons. Eurostat
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