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Eurozone inflation hits record-breaking 8.9%

It is noted that food, alcohol, and tobacco prices increased by 9.8% in June

BRUSSELS, August 18. /TASS/. The Eurozone has set a new inflation record in July, reaching 8.9% in annual terms against 8.6% in June, according to a report from the EU’s statistical office, Eurostat. Thus, the figure has more than tripled since July 2021, when annual inflation in the Eurozone reached 2.16%.

According to the statement, the monthly inflation rate moved up 0.1% in July after rising by 0.8% in June. Eurostat noted that the main reason for the inflation hike was the increase in energy prices, which amounted to 39.7% in annual terms after rising by 42% last month.

Food, alcohol, and tobacco prices increased by 9.8% in June against 8.9% in May, industrial goods saw an increase of 4.5% against 4.3%, respectively. Meanwhile, price hikes for services accelerated to 3.7% from 3.4% in June.

The rapid growth of inflation started in the Eurozone in August 2021 with the onset of the energy crisis in the European Union. Since then, the inflation rate has been rising every month. Last August, the figure was 2.96%, and by February 2022 it increased to 5.87%, and in March it hit 7.44% after the start of the sanctions war against Russia. That said, the European Central Bank (ECB) has set the target inflation rate in the Eurozone at 2% per year in its policy.

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