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.
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