German Inflation Climbs to Highest Since 2008 on Energy Costs
German inflation jumped to its highest level since 2008, driven by energy and higher costs passed on by businesses.
Consumer prices rose 3.4% in August, significantly faster than the 2% the European Central Bank aims to achieve sustainably for the euro area. Earlier on Monday, Spain reported a rate of 3.3%.
So far, policy makers have argued that the current inflation surge is temporary and largely reflects one-off effects. Yet an aggravating supply squeeze is prompting more and more firms to raise charges, a trend that could produce more permanent price pressures.
Inflation imported into Germany is running at 15%, the fastest in four decades, putting a price tag on the difficulties businesses are facing to secure inputs. Selling-price expectations rose to a record in industry, retail trade and construction in the euro area, according to a survey.
Data on the latest trend for consumer prices in the 19-nation region are due on Tuesday.
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