Inflation in the eurozone hit a record high of 8.1% in May, four times the ECB’s target, according to initial estimates, highlighting its plans to raise interest rates next month to tackle rising prices.
According to the Eurostat statistical service, inflation for Greece stood at 10.5% in May from 9.1% in April.
Initially due to post-pandemic supply shortages and rising energy prices following the Russian invasion of Ukraine, inflation has become increasingly widespread, affecting everything from food and services to everyday goods.
Prices rose 8.1% in May from 7.4% in April, in line with preliminary estimates released on May 31, Eurostat said.
Although inflation is now four times the ECB’s target of 2%, policymakers are equally concerned about a rapid rise in underlying prices, arguing that inflation is now being integrated through the “second round” of impact.
Structural inflation stood at 3.8% from 3.5%.
While a 39% increase in energy costs was the main driver of inflation, raw food prices were up 9% and non-energy industrial commodity prices were up 4.2%. Prices of services, where wages are a basic cost, increased by 3.5%.
Source: Capital
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