inflation over the Eurozone rose to an all-time high this month as energy prices, inflation and pressure on the cost of living continued to wreak havoc on the economy.
The jump in consumer prices in the 19 countries that share the euro as a common currency rose from 8.9% in July to 8.6% in the previous month.
Inflationary pressures show no signs of easing its grip as Russia threatens to cut gas supplies to several European countries, including European economic engine driver Germany, which has been hit by cuts in supply to the Nordstream 1 pipeline and is now believed to be teetering on the brink of a recession.
Germany would now run on less than a fifth of its normal energy supply capacity.
Before the Russian invasion of Ukraine, Germany imported more than half of its gas from Russia, with most of it flowing through the pipeline.
High energy prices, although the heavy pressure that halted inflation moderation was not the only factor as service prices and food were also added to the mix.
To combat rising inflation, the European Central Bank (EBC), which is the fiscal anchor for the 19 states, raised interest rates by 50 basis points earlier this month.
The new data will pressure the ECB to raise interest rates by another half a percentage point in September to contain the economic downturn caused by the inflationary jetwash.
While inflation may be on the rise, recently published data from Eurostat, the European Union’s statistical office, shows that the eurozone economy grew by 0.7% this quarter. a 0.5% jump in the first three months of the year, rallying against a significant market slowdown.
The performance was driven by growth in Spain, which was boosted by gross domestic product (GDP) growth of 1.1%, and Italy, which grew by 1%.
However, countries including Latvia fell 1.4% and Lithuania fell 0.4% from the quarter.
In Germany, economic growth stagnated, while that in France, the second largest economy in the eurozone, increased by 0.5%.