Eurozone inflation reaches record 8.1% in May

Eurozone inflation reaches record 8.1% in May

Brussels: Inflation in the 19 countries of the eurozone soared to 8. 1% in May from 7. 4% in April, figures showed on Tuesday, exceeding previous expectations. Prices have risen sharply in the past year, initially because of supply chain problems after the COVID pandemic but subsequently because of Russia's invasion of Ukraine. Energy prices jumped jumped by 39. 2% as a result of a global energy crunch caused by the war. Food prices soared by 7. 5%, while prices for other goods — such as clothing, appliances, cars, computers and books — were up 4. 2% and the cost for services rose 3. 5%. Germany's inflation rate reached 7. 9% in May, according to data published on Monday by the German statistical agency Destatis. Inflation in the eurozone — home to some 343 million people. — is now at its highest since records for the currency began in 1997. Rise in interest rates on the cards To tame price rises, the European Central Bank has already flagged up a 25 basis point increase in its minus 0. 5% deposit rate in both July and September. Early in May, the US Federal Reserve raised interest rates by half a percentage