The official annualized data on the eurozone inflation rate point to a new record in June, reaching 8.6%. The data were provided by the Eurostat agency, released in a document last Friday.
The terrifying result beat a forecast of 8.4%, which economists had expected. Which means that the cost of living continues to rise, above expectations, in the countries that make up the euro zone.
Spain had one of the highest inflation rates in the last month, surpassing the 10% threshold for the first time since 1985.
To try to combat the inflationary advance that has been eroding the purchasing power of Europeans, the European Central Bank will meet at the end of July to raise interest rates. And it should rise again in September.
“If the inflation outlook does not improve, we will have enough information to move faster,” said ECB President Christine Lagarde.
The European Central Bank does not seem to have an easy way out. If it decides to raise interest rates quickly, it will hurt growth and likely drive the bloc into a recession, if it doesn't, inflation rates will continue to skyrocket.