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Euro inflation surge has further to run
According to the flash estimate HICP inflation in the eurozone increased to 9.1% in August, up from 8.9% in July. Core inflation increased to 4.3%, up from 4.0% in July. The break-down in the main components reveals that on the one hand the recent decline in oil and food commodity prices has resulted in declines in the energy and food components of the HICP. However, on the other hand, surging gas prices and the filtering through of past jumps in food and energy prices into services and manufactured goods prices has had a upward impact on inflation. Indeed, energy price inflation declined to 38.3% in August, down ... (full story)