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In the past year, goods were cheaper, a side effect of the corona crisis (symbol image)
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Inflation in the euro area continued to rise in August - and has reached its highest level in almost ten years.
The Eurostat statistics office announced that consumer prices had risen by three percent compared to the previous year.
That is the highest value since the end of 2011.
In July the rate was 2.2 percent.
Analysts had only expected an increase to 2.7 percent on average.
Energy rose particularly sharply again in August, which was 15.4 percent more expensive than a year earlier.
Industrial goods were 2.7 percent more expensive, while food and luxury goods were 2.0 percent more expensive than a year ago.
Services were 1.1 percent more expensive.
Inflation in Germany is higher than it has been since 1993
Core inflation excluding energy and food also increased significantly.
It increased from 0.7 to 1.6 percent.
Core inflation is considered by many economists to be a more reliable measure of inflation because it tends to fluctuate less.
The European Central Bank (ECB) is aiming for inflation of two percent.
This rate is currently clearly exceeded.
However, the ECB does not want to take countermeasures because it regards the rise in inflation as temporary.
It refers to numerous special effects, most of which can be traced back to the corona crisis.
In the past year, many goods were extremely cheap - a side effect of the corona crisis.
In order to stimulate consumption, the federal government had also reduced VAT for a limited period from July 1, 2020 to December 31, 2020.
The regular VAT rates have been in effect again since January 2021, so goods and services tend to be expensive again.
However, the comparison with the previous year exaggerates the actual price dynamics.
These effects are likely to expire in the coming months.
In Germany, inflation climbed to its highest level in almost 28 years in August.
Goods and services were on average 3.9 percent more expensive in August than in the same month last year, the Federal Statistical Office announced on Monday for its first estimate.
The last time there was a stronger rise in prices was in the period after German reunification - in December 1993 with 4.3 percent at the time.
hej / dpa
