Inflation in Greece accelerated to 3.7% in August, up sharply from 2.7% in July, according to the official statistical office of the EU, Eurostat.
Across the eurozone, annual inflation rose to 3.3% in August from 2.9% in July, adding to pressure on the European Central Bank (ECB) ahead of its September meeting and strengthening the case for an interest-rate increase.
Energy was by far the largest contributor to eurozone inflation, with prices rising 14.3% year-on-year in August, compared with 10.3% in July. Services inflation eased to 3.0% from 3.3%, while inflation for non-energy industrial goods increased to 1.2% from 0.9%. Food, alcohol and tobacco prices rose 1.2%, unchanged from July.
Inflation also accelerated in Germany, providing another argument for the ECB to consider raising interest rates. The German consumer price index rose 2.9% year-on-year in August, following a 2.8% increase in July. This marked the strongest reading since April, although it remained below the 3.1% median forecast in a Bloomberg survey.
Energy once again emerged as the main driver, as uncertainty surrounding a potential peace agreement in the Middle East continued to weigh on energy markets. By contrast, inflation in services and food eased. Education costs also contributed to the August increase as the new school year got underway.
