Eurozone consumer price inflation accelerated further in July to set a new high as prices of food rose at a faster pace, while energy price growth remained high despite easing, raising the prospect of a bigger interest rate hike from the European Central Bank in September.
Consumer price inflation climbed to a record 8.9 percent from 8.6 percent in June, preliminary data from Eurostat showed Friday. Economists had forecast the rate to remain unchanged.
Excluding energy, fresh food and alcohol & tobacco, the consumer price index rose 4.0 percent year-on-year following a 3.7 percent increase in June.
The core inflation figure without considering energy and fresh food prices, shot up to 5.0 percent from 4.6 percent in June. Economists had forecast a 4.7 percent increase.
Energy prices continued to rise at the fastest pace among the main CPI components. That said, the rate of increase in energy prices slowed to 39.7 percent from 42.0 percent in June.
by Jyotsna V
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