Home Business Euro zone inflation hits record high of 8.9% in July

Euro zone inflation hits record high of 8.9% in July

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According to data released by Eurostat on the 18th, the inflation rate of the 19 countries in the euro zone was 8.9% in July, surpassing the 8.6% in June and setting a new record high.

Eurostat said the main factor behind another record high inflation in July was a further rise in energy and food prices, while prices for services, which account for more than two-thirds of the euro zone’s economic output, rose by 3.7% in July %. Eurostat data also showed that core inflation in the euro zone, which strips out volatile energy and food prices, was 5.1% in July, above expectations for a 5.0% rate.

Statistics from countries in the euro area show that the inflation rate of many euro area countries has exceeded 10% at present, including 10.8% in Spain, 11.6% in Greece, 15.7% in Poland, and 17.5% in the Czech Republic, while the inflation rate in Lithuania and Latvia is even higher. As high as 21.5% or more.

Market analysts believe that as the European Union continues to cut the use of Russian natural gas in the future, energy costs in Europe will continue to soar, and the inflation rate in Europe is expected to continue to rise in the future.

In order to curb inflation, the euro zone officially started the process of raising interest rates in July, and aggressively raised interest rates by 50 basis points at a time, saying goodbye to its long-standing monetary easing policy.

Consumer and investor confidence has fallen sharply against the backdrop of rising inflation risks and tightening monetary policy, fueling fears of a recession in the euro zone.

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