Europe sees inflation jump on temporary factors

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — Consumers are seeing higher prices in Europe. Official figures released Tuesday show annual inflation hit 3% in August. Economists say it’s mostly temporary. But that hasn’t stopped people from debating how long higher prices will last. The price jump could influence upcoming wage negotiations in Germany, the largest of the 19 economies that use the euro currency. One thing economists are fairly sure of: the inflation spike won’t budge the European Central Bank off its stimulus programs or make it look at higher interest rates. For now, the central bankers are saying that prices rises are only temporary and that the economy still needs pandemic support efforts.