Europe sees higher inflation on fleeting factors like oil

Consumers are seeing higher prices in Europe

FRANKFURT, Germany -- Consumer prices spiked higher than expected in Europe in August, boosted in large part by more expensive fuel. Economists say the jump is temporary, but it could raise questions about how persistent higher inflation might turn out to be. The 19 countries that use the euro currency saw inflation spike to an annual 3.0% in August, up from 2.2% in July, according to figures released Tuesday by European Union statistics agency Eurostat. The increase was so large in part because some prices were much lower a year ago due to one-time factors connected to the coronavirus pandemic. Oil prices, following a price slump a year ago during the depths of the pandemic recession, contributed to a 15.4% rise in energy costs. With volatile fuel and food left out, core inflation was 1.6%. The latest figure also reflects other transitory factors, such the timing of summer retail sales in France and Italy, and the expiration of German tax breaks on retail purchases.