Consumer price inflation at record high in Europe
June 7, 2022 - Inflation in the 19-member eurozone hit a record 8.1% year-on-year in May, a record since the currency was introduced in 2002.
The European Central Bank (ECB) is set to end its bond-buying stimulus programme at a meeting in Amsterdam on June 9, as consumer price inflation in the eurozone (officially known as euro area) soars to an all-time high.
Eurozone consumer prices rose by 8.1% year-on-year in May, a record since the single currency was launched and well above the ECB’s target of 2%.
The gap between the highest and lowest inflation rates among the currency bloc’s 19 member states has widened severely.
The scale ranges from Malta, with an inflation rate of 5.6% in May, to Estonia, where inflation hit 20.1% last month – a difference of 14.5%.
The ECB is expected to hike interest rates in the coming weeks, driven by rising food and energy prices, fuelled by pent-up consumer demand during the Covid-19 pandemic, and the war in Ukraine.
The eurozone is a monetary union within the European Union, where members have adopted the euro as their primary currency and legal tender.