October 1 (WNN) — Eurozone inflation rose to 3.4% in the month of September, reaching its highest level in 13 years.
German consumer prices rose to their highest level in 30 years, rising by 4.1% that month and prompting protests from workers demanding higher wages.
Rising energy prices have driven growth, which is not expected to end until 2021 before easing next year. Economists are debating whether the central bank needs to change its monetary policy.
Of the 19 countries affected by rising energy prices, France is the latest to increase cost-cutting measures. Prime Minister Jean Casteux said on Thursday that the government would halt the hike in natural gas prices and hike electricity taxes. Italy, Greece and Spain have also announced measures to counter inflation.
Energy prices may continue to rise with the transition from fossil fuels to other sources of energy.
“Things have accelerated and this is true for growth, the same is true for inflation, and the same is true for employment,” European Central Bank President Christine Lagarde told CNBC last month. “So, in a way, it’s a package of good news because it means our economies are responding.”