Daily Times

Eurozone inflation accelerated to another record high in June, official data showed on Friday, as Russia’s war in Ukraine drives up energy prices and hammers the European economy.

The EU’s Eurostat data agency said the increase in consumer prices in the 19 countries that use the euro reached 8.6pc in June, leaping from the previous record of 8.1pc a month earlier. Consumer prices in the eurozone have hit records since November, buffeted by sky-high energy prices, which jumped by 41.9pc over one year, caused by the fallout of Russia’s invasion of its neighbour Ukraine.

But analysts also pointed to the rise in food prices, which accelerated by 8.9pc, showing that the inflation problem was spreading through the economy. “Historically, we have never had such a high figure for the contribution of food. It will have a big impact,” said Philippe Waechter of Ostrum Asset Management. The European Central Bank has said it will do whatever it takes to bring inflation back to its target level, with political pressure high to bring energy and food prices into check.