Inflation in the eurozone rose to 3 percent year on year in August. That is the highest level since the end of 2011. The European statistical office Eurostat reports this based on preliminary figures.

In July, inflation was still 2.2 percent compared to the same month a year earlier.

Higher energy prices mainly cause the increase. The price is more than 15 percent higher than a year earlier. Industrial goods also became considerably more expensive, as did food, alcohol and tobacco and services. The bottom line is that consumers and companies are more expensive for many things, and their purchasing power decreases.

Apart from things like rising energy prices and higher prices for products due to shortages of materials since the restart of the global economy after the corona crisis, one-off effects also play a role. For example, some of the prices fell last year or were difficult to measure, making comparisons more difficult. Several countries also took measures last year that affected prices, such as Germany, which temporarily reduced the high VAT rate and the sale period that took place later in France, among others.

High inflation is a test for the European Central Bank (ECB). It aims for a currency depreciation of 2 percent. However, for the time being, policymakers see inflation as temporarily high, and there are no indications yet that the central bank will change its policy.