Euro zone inflation reaches record high as energy costs soar

Euro zone inflation rose to another record high this month with energy costs rising significantly, latest figures show 

Consumer price growth in the 19 countries sharing the euro currency rose to 9.1% in August from 8.9% a month earlier.

This was slightly above the expected 9% as it stayed well clear of the ECB's 2% target, preliminary data from Eurostat, the EU's statistics agency, showed on August 31.

Today's figures also show that Ireland's inflation, as measured by the Harmonised Consumer Index of Prices, fell back in August to 8.9% from 9.6% in July.

Energy costs remained the driver of prices in August but food inflation also rose into double digit territory while non-energy industrial goods, a particular focus for the ECB, showed a 5% price surge.

Energy prices rose by 38.3% in August, compared with 39.6% in July.

Food, alcohol & tobacco prices were also up at 10.6%.

Amid rising energy costs, there were further announcements of energy increases ahead of autumn and winter. 

Earlier this month it was announced that by SSE Airtricity that electricity bills are set to rise by over 35%, and gas bills to by 39% from October 1.

It is believed to be among the largest price hikes seen in the energy sector in the country.

In a statement the company said the war in Ukraine and "heightened geopolitical tensions" have resulted in what it described as "sustained and unprecedented increases in wholesale energy costs".

However, inflation was seen in all sectors in the EU zone. 

Significantly, according to Eurostat, closely watched underlying price growth, which filters out volatile food and energy prices, continued to soar, indicating that rapid price growth is spreading across the economy.

Inflation excluding food and fuel prices increased  to 5.5% from 5.1% while an even narrower measure, which also excludes alcohol and tobacco rose to 4.3% from 4%.