The eurozone’s annual rate of inflation accelerated again in June, reaching its highest level in history.
Consumer prices rose 8.6% on year in June after climbing 8.1% in May, 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 at 8.4% in June.
Russia’s attack on Ukraine has fueled a climb in energy prices and they were the main driver of the on-year increase. Energy prices rose 41.9% compared with 39.1% in May, showing an acceleration. However, price pressures have broadened to other categories with food, alcohol and tobacco prices up 8.9% on year in June compared with 7.5% in May.
Consumer prices rose 0.8% on month in June, data from Eurostat showed.
The core consumer price index, which excludes the more volatile categories of food and energy, rose 3.7% on year in June after rising 3.8% the previous month. This figure was below the 3.9% forecast by economists in a Wall Street Journal poll.
Economists expect eurozone inflation to continue hitting new highs through the summer, as energy and food prices continue to rise due to Russia’s war in Ukraine. A worsening of supply-chain disruptions has also put additional upward pressure on inflation.
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