Eurozone Inflation Hits New All-Time High

Annual inflation across the eurozone has risen to 8.9 percent in July, following the 8.6 percent record in June.

According to Eurostat, the energy component of the euro area inflation recorded the highest rate in July despite regressing from 42 percent in June to 39.7 percent.

The food, alcohol, and tobacco component has risen to 9.8 percent from 8.9 in June; non-energy industrial goods inflation has increased from 4.3 percent to 4.5 percent; services have recorded 3.7 percent from 3.4 percent last month.

European Commissioner for Economy Paolo Gentiloni said the eurozone economy outperformed the expectations for the second quarter.

Latvia has recorded the highest increase in the annual rate at 1.7 percent, reaching 21 percent in July from last month’s 19.2.

The Netherlands’ annual rate in July reached 11.6 from 9.9 percent, while Germany hit 8.5 percent from 8.2 percent in June.

“Uncertainty remains high for the coming quarters: need to maintain unity and be ready to respond to an evolving situation as necessary,” Gentiloni wrote on Twitter.

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