EU Inflation Breaks to a New High, Driving Higher Recession Risks

44469 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.

Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.

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Written by Arthur Idiatulin

Arthur is a stock market and currency expert with a vast experience in market research and investment consulting. Dedicated Forex trader and financial practitioner, keen on testing new trading techniques and investment strategies.


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