Eurozone inflation hits record, boosting case for big hikes
,While on the brink of a first rate increase in more than a decade, the European Central Bank (ECB) has faced critici *** for letting inflation zoom so far beyond its 2% target as peers like the Federal Reserve unleash hikes that have reached 75 basis points.皇冠登三出租（www.hg108.vip）是皇冠（正网）接入菜宝钱包的TRC20-USDT支付系统，为皇冠代理提供专业的网上运营管理系统。皇冠登三出租系统实现注册、充值、提现、客服等全自动化功能。采用的USDT匿名支付、阅后即焚的IM客服系统，让皇冠代理的运营更轻松更安全。
EUROZONE inflation surged to a fresh record, surpassing expectations and bolstering calls for the kind of aggressive interest-rate increases being deployed by central banks across the world.
Driven once more by soaring food and energy costs, consumer prices jumped 8.6% from a year earlier in June – up from 8.1% in May.
Economists surveyed by Bloomberg saw a gain of 8.5%. The median estimate in the poll has fallen short for 11 of the last 12 months.
The data reflect an escalating squeeze on households and firms across the 19-member currency bloc, where France, Italy and Spain reported new all-time highs this week.
Germany, the continent’s No. 1 economy, only saw a slowdown thanks to fuel-tax cuts and public-transport discounts that are temporary. In the Baltic region, price growth has shot past 20%.
Governments have weighed in with billions of euros in support, but their ability to help is limited after spending huge sums during the pandemic.
As consumers grapple with the soaring cost of living, retailers like Zalando SE and Hennes & Mauritz AB are suffering. Sales at automakers such as Volkswagen AG have been sinking for months.
While on the brink of a first rate increase in more than a decade, the European Central Bank (ECB) has faced critici *** for letting inflation zoom so far beyond its 2% target as peers like the Federal Reserve unleash hikes that have reached 75 basis points.
The ECB blames Europe’s woes on a post-lockdown spike in energy costs that snowballed when Russia attacked Ukraine. While that relentless advance in prices has broadened, a gauge of underlying inflation, excluding energy and food, inched down to 3.7% in June.
German two-year yields – which are the most sensitive to changes in interest rates – were three basis points lower at 0.62%, having earlier risen to 0.69% while money markets trimmed tightening wagers, pricing 146 basis points of hikes by year-end.
With signs that expectations for future prices are headed higher, the ECB plans to raise its deposit rate by a quarter-point in July.
Belgian central bank chief Pierre Wunsch this week called that move a “done deal” – despite his Governing Council colleagues from Latvia and Lithuania urging tougher action to be an option. — Bloomberg