Eurozone inflation rose to record high of 8.6% in June

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The eurozone’s annual inflation rate accelerated again in June and reached its highest level in history.

Consumer prices rose 8.6% year-on-year in June after rising 8.1% in May, according to a first estimate released on Friday by Eurostat, the European Union’s statistics agency. Economists surveyed by the Wall Street Journal had forecast eurozone inflation of 8.4% in June.

Russia’s attack on Ukraine has driven a rise in energy prices and were the main driver of the year-on-year increase. Energy prices rose 41.9% from 39.1% in May, showing an acceleration. However, price pressures have widened to other categories with food, alcohol and tobacco prices rising 8.9% year-on-year in June compared to 7.5% in May.

Consumer prices rose by 0.8% compared to June, according to Eurostat data.

The basic consumer price index, which excludes the most volatile categories of food and energy, rose 3.7% year-on-year in June after rising 3.8% the previous month. That figure was below the 3.9 percent forecast by economists in a Wall Street Journal poll.

Economists expect eurozone inflation to continue to hit new highs over the summer, as energy and food prices continue to rise due to Russia’s war in Ukraine. The worsening supply chain disruptions have also increased upward pressure on inflation.

Write to Maria Martinez at

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