Inflation in European Union is now higher than in Britain

Inflation in the European Union is now higher than in Britain as rising energy and food prices hit households across the continent.

A report by official statisticians Eurostat showed that prices in the 27-nation bloc were 10.1 percent higher last month than in August 2021.

That was a sharper increase than the 9.9 percent increase in the UK, underscoring the magnitude of the cost of living around the world.

Of the EU countries, inflation was highest in Estonia at 25.2 percent and lowest in France at 6.6 percent. In the eurozone, it was 9.1 percent.

That was the highest rate since the introduction of the euro in 1999.

Prices around the world have risen due to rising energy and food costs in the wake of the war in Ukraine and the aftermath of the Covid pandemic.

The European Central Bank (ECB) raised euro-zone interest rates by an unprecedented 0.75 percentage point last week and said further hikes were imminent.

Speaking at the French central bank yesterday, ECB President Christine Lagarde admitted that rate hikes could hit growth.

“It’s possible, but it’s a risk we have to take,” she said.