Oct. 1 (UPI) — Eurozone inflation surged to 3.4% in the month of September, hitting its highest level in 13 years.
German consumer prices hit their highest levels in 30 years, rising to 4.1% in that month and prompting protests from workers demanding higher pay.
Rising energy prices have driven the increase, which isn’t 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 measures to mitigate costs. Prime Minister Jean Castex said Thursday that the government will block natural gas price increases and rises in electricity taxes. Italy, Greece, and Spain have also announced measures to counteract inflation.
Energy prices may continue to increase with the transition from fossil fuels to other sources of energy.
“Things have picked up faster and that is true for growth, that is true for inflation, and that is true for employment,” European Central Bank President Christine Lagarde told CNBC last month. “So, in a way, it is a package of good news because it means that our economies are responding.”