As inflation soars, the currency is under "enormous strain."

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Eurostat, the European Commission's statistics office, said Wednesday that July's 8.9% growth was the greatest in the Eurozone's 23-year history.

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The European Central Bank (ECB) decided to hike interest rates on September 8 because the inflation rate grew by a greater amount than had been anticipated.

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This came as a nice surprise to economists, who had expected a growth rate of 9 percent for the economy.

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According to Eurostat, the annual inflation rate for energy reached its highest point in August at 38.3 percent, down from 39.6 percent in the previous month.

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In contrast, the cost of food, beverages, and cigarettes increased by 10.6 percent from the 9.8 percent seen in July.

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Inflation is "becoming a real burden for more and more individuals," said Joachim Nagel, chairman of Germany's central bank.

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Isabel Schnabel, a member of the ECB's board of directors, has expressed concern that the bank's 2% long-term inflation target could "de-anchor."

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She contended that inflation was weakening people's trust in the currency reserves held by their respective governments.

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The hike stoked recession worries as central banks on both sides of the Atlantic prepared to boost rates the following month.

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