Record inflation in eurozone puts intense pressure on ECB
17:26
The highest inflation in the eurozone's history, at 8.6 percent in June. Price increases in Europe are the result of more expensive fuel and energy. Eurostat has just published the final reading for June. 8.6 percent is 0.5 percentage points higher than the May reading. In May, inflation was 8.1 percent y/y.
Analysts expected the increase in June even before the publication of the preliminary data. That's because Eurostat publishes aggregate Eurozone inflation data after individual countries have published their national data.
However, they estimated a slightly lower price increase than Eurostat's reported in early July – they expected a reading of 8.4 percent. On July 1, the EU statistics office estimated that record inflation in June was 8.6 percent. The final assignment is, therefore, in line with the preliminary data.
The June reading leaves no choice for the European Central Bank, which will have to carry out its announcement of a rate hike, according to PKO BP analysts. The ECB is scheduled to meet on Thursday, July 21.
