Inflation bei 3,2 Prozent: Tanken wird zum Fass ohne Boden

Berlin - The inflation in the Eurozone, driven by the oil price shock, turned out to be slightly lower than initially anticipated in August, according to the EU's statistical office. Consumer prices rose by 3.2 percent, up from 2.9 percent in July, the office reported on Thursday. An earlier estimate had projected 3.3 percent for August.

The European Central Bank (ECB) responded to the inflation surge by raising interest rates by a quarter point to 2.5 percent the previous week. The bank expects total inflation to remain significantly above its target of 2.0 percent throughout the first half of 2027. Energy is the primary driver of inflation: it increased by 14.3 percent compared to the same month last year.

The ECB aims to prevent the oil price shock from causing lasting disruptions in the price structure through so-called second-round effects. The impact of the Iran war-fueled energy costs on consumers and businesses poses a risk of a wage-price spiral, which could cement the high level of inflation. Financial markets speculate that the ECB may make another rate hike at the end of the year.

ECB chief economist Daniel Hartmann of Bantleon AG sees upside risks in numerous sectors, such as higher transportation and packaging costs, more expensive agricultural inputs, and drought from an energy price shock. These effects usually manifest only with a delay of six to nine months after a spike in energy prices. He fears that the inflation rate for the Eurozone could even reach over 4.0 percent at the end of the day.