Inflation Hits Record 8.9% in Euro area, But Economy Grows

Inflation Hits Record 8.9% in Euro Area, But Economy GrowsLONDON — Inflation in the European countries using the euro currency shot up to another record in July, pushed by higher energy prices fueled by Russia’s war in Ukraine, but the economy still managed better-than-expected, if meager, growth in the second quarter.

Energy prices surged in July by 39.7%, only slightly lower than the previous month due to gas supply concerns. Prices for food, alcohol and tobacco rose by 9.8%, faster than the increase posted last month due to higher transport costs, shortages and uncertainty around Ukrainian supply. Economists pointed to the rebound in tourism following the COVID-19 pandemic, with short-staffed airports and airlines packed this summer, leading to travel chaos.

, raising fears of a recession with inflation at 40-year highs. But the job market is even stronger than before the COVID-19 pandemic, and most economists, including Federal Reserve Chair Jerome Powell, have said they don’t think the economy is in recession.Many, however, increasingly expect an economic downturn in the U.S. to begin later this year or next, much like in Europe.

While European Union governments approved a measure this week to reduce gas use by 15% and have passed tax cuts and subsidies to ease a cost-of-living crisis, Europe is at the mercy of Russia and the weather.

Source: Energy Industry News (energyindustrynews.net)

United Kingdom Latest News, United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Gas crisis raises recession risk for inflation-hit eurozone economy\n\t\t\tJournalists in 50+ countries follow the constant flow of money made and lost in oil & gas while\n\t\t\ttracking emerging trends and opportunities in the future of energy. Don’t miss our exclusive\n\t\t\tnewsletter, Energy Source.\n\t\t
Source: ftenergy - 🏆 47. / 63 Read more »

France’s economy grows by 0.5% over the second quarter\n\t\t\tKeep abreast of significant corporate, financial and political developments around the world.\n\t\t\tStay informed and spot emerging risks and opportunities with independent global reporting, expert\n\t\t\tcommentary and analysis you can trust.\n\t\t
Source: FT - 🏆 113. / 51 Read more »

China rocket: Uncontrolled return to Earth raises concernIt's very unlikely to hit a populated area but raises questions about countries' handling of space junk.
Source: BBCNews - 🏆 3. / 97 Read more »

China rocket: Uncontrolled return to Earth raises concernIt's very unlikely to hit a populated area but raises questions about countries' handling of space junk. Meanwhile in other news..
Source: BBCScienceNews - 🏆 87. / 53 Read more »

Sex offences in Watford spike 40 to hit record highSexual offences reported in Watford have soared 40 per cent in a year to the highest level since records began.
Source: Observer_Owl - 🏆 18. / 72 Read more »

The silver linings of a recessionThe last time the Fed tightened monetary policy so dramatically, in the early 1980s, prices had more than doubled over the previous decade. Today the figure is only 29%
Source: TheEconomist - 🏆 6. / 92 Read more »