Inflation rose from 8.1% in May to 8.6% in June. The reason is the sharp rise in food and energy prices in many countries.
In the eurozone, consumer prices are rising at a record pace, with inflation reaching 8.6% year-on-year in June. This was reported by the Financial Times.
According to Eurostat, inflation rose from 8.1% in May to 8.6% in June. The reason is the sharp rise in food and energy prices in many countries, which has prevented the slowdown in inflation in Germany caused by government subsidies for transportation and electricity.
Core inflation, which reflects the rate of price growth excluding short-term fluctuations in prices, such as energy and food, slowed from 3.8% in May to 3.7% in June. Prices for services slowed to 3.4%, while prices for non-energy manufactured goods continued to accelerate to 4.3%.
It was noted that the recording of high inflation rates again raises tension in the European Central Bank at the pace of the planned increase in interest rates.
According to ECB President Christine Lagarde, the regulator will stick to the plan to start raising key rates by 0.25 percentage points on July 21. A bigger step is expected in September unless the inflation outlook improves soon. .
Inflation has hit eurozone records
It was previously reported that the Bank of Switzerland raised the discount rate for the first time in 15 years. Also, the US Federal Reserve raised its base rate to a record high in 28 years.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.