• Wednesday, 03 July 2024

Eurozone inflation hits new record of 8.1% as energy costs soar

Eurozone inflation hits new record of 8.1% as energy costs soar
Brussels, 31 May 2022 (dpa/MIA) - Inflation in the 19 countries using the euro hit a fresh record of 8.1% in May due to surging energy and food prices, the European Union statistics agency Eurostat said in its first estimate on Tuesday. In the April, annual inflation had been 7.4%. Economists had expected on average only a rise to 7.8% in May. Price inflation in the euro area has never been so high since the introduction of the common currency in 1999. The rate has been rising since the summer of 2021, with new record highs continually recorded. The war in Ukraine and the tough coronavirus measures in China recently exacerbated price hikes. Once again, inflation was driven by an extremely sharp increase in the price of energy, which rose by 39.2% year-on-year. Food and beverages were 7.5% more expensive than a year ago. In May, core inflation that excludes energy, food, alcohol and tobacco increased to 3.8% from 3.5%. In a bid to slow inflation, the European Central Bank has signalled that it could deliver the first of several interest rate hikes this year at its July meeting.