Inflation in the 19 countries using the euro currency has climbed to a record 8.6%. Surging energy prices amid the Ukraine war have pushed prices up.
The euro hit a record 8.6% in June, up by 0.5% MoM.
Inflation was pushed by an increase in energy costs, which had risen by 41.9% compared to last year’s numbers. The price increase has been partly connected to Russia’s war in Ukraine.
The cost of food, tobacco and alcohol also surged to a rate 8.9% more expensive than prices last year.
Baltic countries stand to be the worst hit among eurozone members. Inflation in Estonia, Lithuania and Latvia now stands at over 18%. Six more countries in the 19-member euro area face inflation rates at 10% or above.
Inflation in Germany fell slightly in June. It now stands at 8.2%, down by 0.5% MoM.
However, inflation of the euro itself is at its highest level since record keeping for it began in 1997.
Price increases of goods such as clothing, appliances, cars, computers and books remained steady, as did prices for services.
The European Central Bank said it would do whatever it takes to bring energy and food prices back to target levels. (LRT/Business World Magazine)
