Eurozone Inflation Taps Highest Rate Ever Recorded Reaching 9.1%, as Nord Stream, Gazprom Halt Gas Supplies – Economics Bitcoin News

The Eurozone’s inflation rate reached a record high in August of 9.1%, the highest ever recorded in history, according to Europe’s statistics office Eurostat. The rate was higher than economists suspected and most of the rise was fueled by Europe’s rising energy prices.

Europe’s Torrid Inflation Continues to Rise, While the Region Faces an Energy Crisis

Europe has been experiencing the most severe inflation since the 1950s. All members of the European monetary union have seen rising consumer prices. Recent polling by Reuters revealed that Eurostat data is much larger than economists had predicted.

Statisticians show that food and energy had the highest inflation increases, with food seeing a 10.6% increase. The non-energy industrial goods saw an increase of 5%, compared to last year’s measured value. The Ukraine-Russia conflict could make the energy crisis worse.

Starting today and up until September 2, 2022, the Nord Stream 1 pipeline is undergoing “maintenance.” The maintenance has people worried that Russian leaders will extend the shutdown of the pair of offshore natural gas pipelines that connect Russian gas supplies to Germany. Already, the Russian Federation has reduced flow by 40% and 20% respectively in June and July.

Gazprom, the Russian giant of gas, announced Tuesday to the public that it would stop supplies of gas to Engie in France. Some believe Europe might need an international energy bailout, while others think European leaders must rescue the energy users in their member nations. Some think the European Central Bank should increase the benchmark interest rate, as has the Federal Reserve in recent years.

Reports indicate that the ECB’s September 8th meeting will be held and economists expect the ECB to raise the benchmark rate 75 basis points (bps). Speaking with The Street, ING’s senior economist, Bert Colijn, opined that the ECB needs to slow down, but how much is the current question at hand.

“Specific European problems continue to push inflation higher — The gas supply crisis and droughts are adding to persisting supply-side pressures on inflation at the moment,” Colijn said. “As the economy is slowing rapidly — and perhaps already contracting at this point — the question is how much the ECB needs to slam the brakes,” the ING economist added.

In this story, tags
Bert Colijn. 9.1% and 9.1% inflation. ECB. Economics, Energy crisis. European Central Bank. European Leaders. European Union Parliament. Eurostat. Eurozone economy. Eurozone inflation. Gazprom. ING economist. Nord Stream 1. Red-hot Inflation. Russian Gas Supplies.

What do you think about the Eurozone’s battle with red-hot inflation? Comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, a Florida-based financial journalist and news lead at News is Jamie Redman. Redman joined the cryptocurrency community in 2011 and has been an active participant ever since. Since 2011, Redman has been an active member of the cryptocurrency community. Redman has contributed more than 5700 articles to News since September 2015. These articles are about disruptive protocols that are emerging.

Images CreditsShutterstock. Pixabay. Wiki Commons

DisclaimerThis information is provided for educational purposes only. It does not constitute an offer, solicitation, or recommendation of any company, products or services. doesn’t offer investment, tax or legal advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.

Get more Crypto News at CFX Magazine