Europe's Inflation Pressure Soars as Energy Costs Skyrocket
Rising energy prices have become a major driver of inflation in Europe, as tensions in the Middle East and concerns over energy supplies fuel higher costs across the continent.
The price of oil has climbed to six-week highs amid escalating tensions in the region, with Brent crude briefly rising above $97 per barrel and West Texas Intermediate (WTI) crude reaching nearly $93 per barrel.
European gas prices have also surged, with EU gas storage facilities at their lowest level since records began 15 years ago. The price of gas has risen by over 75% in the past two months, reaching a three-year high this week.
The impact of higher energy costs is being felt across Europe, with annual inflation expected to rise to 3.3% in August from 2.9% in July. Energy prices rose 14.3% year-on-year, accelerating from a 10.3% increase in July.