Euro Area Inflation To Hit New Record High Of 8.6% In June

Euro area annual inflation is expected to hit a new record high of 8.6% in June, up from 8.1% in May, according to a flash estimate from Eurostat on Friday.

The figure is above market expectations of 8.4%.

Looking at the main components of the inflation, energy is expected to have the highest annual rate in June with 41.9%, followed by food, alcohol & tobacco with 8.9%, non-energy industrial goods with 4.3% and services with 3.4%.

Last week, European Central Bank's President Christine Lagarde said that the bank will "go as far as necessary" to ensure that inflation stabilizes at the bank's 2% target over the medium term.

Lagarde reiterated a 25 basis points rate hike intention of the bank for the September meeting.

"If the inflation outlook does not improve, we will have sufficient information to move faster. This commitment is, however, data dependent," Lagarde added. -