Eurozone inflation picks up

Consumer prices in the 19-member currency bloc soared in June, statistics show

The EU’s statistics office, Eurostat, said on Friday that inflation in the eurozone jumped 8.6% in June on an annual basis as the cost of living crisis worsened. The rate was up from the 8.1% recorded in May, and was higher than expected by economists.

The increase is mainly due to energy and food prices. Preliminary data from Eurostat suggests that energy will experience the highest annual rate in June (41.9%, compared to 39.1% in May), followed by food, alcohol and tobacco (8, 9%, against 7.5%), non-energy industrial goods (4.3%). %, against 4.2%), and services (3.4%, against 3.5% in May).

Inflation has been rising steadily in the euro zone for more than a year and is currently four times higher than the target set by the European Central Bank (ECB). The regulator, which has pledged to tackle soaring prices, is due to meet at the end of July to start raising interest rates.

ECB President Christine Lagarde said earlier this week that if the outlook for inflation does not improve, « we will have enough information to go faster. »

For more stories on economics and finance, visit RT’s business section


Back to top button