Isabel Schnabel, a German executive board member at the European Central Bank, said the 0.5% increase in the bank’s main rate in July has not stemmed inflation. Not even a recession will tame inflation, she said. The ECB is poised for another rate hike in September, with officials divided as to whether it will be by 0.25% or 0.50%. [WOLFGANG RATTAY/REUTERS]
Inflation in the European countries using the euro currency hit another record in August, fuelled by soaring energy prices mainly driven by Russia’s war in Ukraine.
Annual inflation in the eurozone’s 19 countries rose to 9.1% in August, up from 8.9% in July, according to the latest figures released Wednesday by the European Union statistics agency.
Inflation is at the highest levels since record-keeping for the euro began in 1997.
Energy prices surged 38.3%, while food prices rose 10.6%. Prices for goods were up 5% and the cost of services rose 3.8%. [AP]