Euro zone inflation hits yet another record high as food and energy prices soar
CNBCNov 27, 2022
The Facts
Inflation rates in the eurozone have hit their highest annual levels since the creation of the euro in 1999.
Average rates in the 19 member nations reached 8.1% in May, marking a record high for the seventh month in a row.
The Spin
Establishment-critical narrative
Although European leaders are keen to show solidarity with Ukraine, economic sanctions on Russia will keep energy prices higher than they otherwise would have been, increasing the prospect of recession in the eurozone. European countries are paying the price for their own embargo.
Pro-establishment narrative
Since rates have been at record lows since 2015, this move won't damage the economy. The acceleration in May was already expected by European Central Bank officials, who are planning a gradual normalization of monetary policy to start in the upcoming months.
