Eurozone inflation jumps to 10-year high in August

According to preliminary data from the statistical agency Eurostat, consumer prices in the eurozone increased by 3% year-on-year in August after rising 2.2% in July. Analysts had expected a 2.7% rise.

Experts note that annual consumer inflation in August accelerated to its highest level in 10 years, and such dynamics is likely to continue in the coming months. Inflation is expected to peak in November. It should be noted that the acceleration of inflation will be a kind of test of the European Central Bank's determination to continue to maintain a super-soft monetary policy.

According to the regulator, the jump in inflation was caused by one-off factors related to the recovery of the European economy after the coronavirus crisis, and the growth rate of consumer prices will slow down early next year.

The next meeting of the ECB will be held on September 9, and at it the Central Bank will have to determine the volume of bonds redemption for the next quarter.