By Maria Martinez
The eurozone’s annual rate of inflation accelerated again in July, reaching its highest ever level.
Consumer prices rose 8.9% on year in July after climbing 8.6% in June, according to a first estimate released Friday by Eurostat, the European Union’s statistics agency. Economists polled by The Wall Street Journal had forecast eurozone inflation unchanged at 8.6% in July.
Russia’s attack on Ukraine has fueled a surge in energy prices and they were the main driver of the on-year increase. Energy prices rose 39.7% compared with 42.0% in June, showing a deceleration. However, price pressures have broadened to other categories, with food, alcohol and tobacco prices up 9.8% on year in July compared with 8.9% in June.
Consumer prices rose 0.1% on month in July, data from Eurostat showed.
The core consumer price index–which excludes the more volatile categories of food and energy–rose 4.0% on year in July after rising 3.7% the previous month. This figure was above the 3.8% forecast by economists in a Wall Street Journal poll.
Economists expect eurozone inflation to reman at a high level through the summer, as energy and food prices continue to rise due to Russia’s war in Ukraine. Eurozone inflation is expected to peak in September.
Write to Maria Martinez at [email protected]
