Price growth in July exceeded economists’ expectations, rising to 8.9% from a year earlier.
The July inflation rate in the Eurozone set a new all-time high, accelerating to 8.9% from a year earlier. On Friday, July 29, according to Bloomberg, citing Eurostat data.
For comparison, in June inflation in the euro area was 8.6%. In July, consumer price increases were still driven by rapidly rising energy and food prices. At the same time, the number of July exceeded the expectations of economists surveyed by Bloomberg, who predicted an increase in prices by 8.7%.
After slowing in June, core inflation, which excludes short-term fluctuations in energy and food prices, also reached a record 4%.
European Central Bank board member Martins Kazaks, after the regulator’s meeting in July, called for a “fairly significant” rate hike at the next ECB meeting in September. Along with the ECB, the United States is also struggling with record inflation, as part of which the Fed raised its rate by 75 basis points for the second time.
To tame high prices in the eurozone, the governments of the 19 bloc countries have allocated billions of euros to support households. However, France and Spain continued to set inflation records.
According to a recent survey by S&P Global, manufacturers are reporting a sharp drop in demand, and higher prices are dampening activity in the services sector. The market fears a recession in the bloc, including against the backdrop of an increase in ECB rates. JPMorgan and Goldman Sachs are among the biggest banks predicting a recession, and Goldman says it will actually start early this quarter.
It was earlier reported that the US is raising the key rate again to fight inflation.
Record inflation and the collapse of the euro. The ECB is raising rates
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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.