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Eurozone August inflation hits record high of 9.1% as energy prices soar
CGTN

Eurozone inflation hit a new record high in August of 9.1 percent, mainly driven by surging gas prices amid an energy battle between Moscow and Brussel, according to data released on Wednesday by the European Union's statistical office Eurostat.

The new rate is higher than July's rate of 8.9 percent and above the Reuters poll forecast of 9 percent. It is also the ninth consecutive month of consumer price rises in the eurozone.

Energy prices increased the most in August, followed by food, alcohol and tobacco, and non-energy industrial goods and services, according to Eurostat.

Energy prices are rising across Europe with no end in sight as Russia's Gazprom announced it was halting gas flows to Europe from Wednesday.

Source: Eurostat

Source: Eurostat

The inflation in Germany, the region's largest economy, rose to 8.8 percent in August, its highest level in almost 50 years.

Meanwhile, French inflation decreased in August to 6.5 percent, lower than market expectations and down from 6.8 percent in July.

To stifle soaring inflation, the European Central Bank (ECB) raised its deposit rate by 50 basis points to zero in July and another hike is expected in September.

The eurozone's economy is likely to experience an economic slowdown, ECB's chief economist Philip Lane said on Tuesday, adding that he could not rule out a mild, temporary and technical recession, Reuters reported.

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