EU Inflation Breaks to a New High, Driving Higher Recession Risks
Annual inflation in the Eurozone in July accelerated to 8.9%, showed a report released on Friday. This is a new all-time high. In June, inflation was 8.6% and in May, 8.1%.
Inflation in the Eurozone has been breaking the record for the ninth month in a row. In July, it beat consensus of 8.6% and was well above the target of 2% set by the European Central Bank.
The main driver of inflation this month was rising energy prices due to Russia's operation in Ukraine. However, the rise in prices also affected food and services, which indicates a broadening of inflation from energy to other goods and services.
Core inflation, which excludes energy and food, slowed growth in June but jumped to a record 5% in July, according to Eurostat data.
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