BRUSSELS—Eurozone inflation hit a new record high of 8.9% y/y in July, EU Statistics Office confirmed on Thursday, with core indicators excluding the most volatile factors and keys to monetary policy rose sharply.
Consumer prices in 19 countries using the euro rose 0.1% month-on-month in July and 8.9% year-on-year, according to Eurostat, the European Union’s statistical office. This is the highest value since the euro was founded in 1999.
According to Eurostat, 4.02 percentage points of the total are due to more expensive energy (costs have skyrocketed due to the war in Ukraine) and 2.08 percentage points are due to more expensive food alcohol and tobacco.
But even with those most volatile factors removed, July prices are still down 5.1% year-on-year, even with what the European Central Bank calls core inflation and closely monitoring interest rate decisions. it was high.
The ECB’s headline inflation target is 2.0%
Banks launched a tightening cycle last month after years of ultra-loose monetary policy, but prices for services that generate more than two-thirds of the eurozone’s GDP still fell 3.7 y/y in July. % increased, increasing by 1.6%. Percentages refer to final results.
Industrial goods were 4.5% higher than 12 months ago, adding 1.16 percentage points to the final headline numbers.