Euro zone inflation confirmed at record high 8.1% in May

The ECB last week said that it would raise its key interest rates in July by 25 basis points and again in September, when a bigger increase will be necessary if the outlook has not improved. 

Euro zone inflation rose to a record high 8.1% last month in line with a preliminary estimate, more than four times the European Central Bank's target and underscoring its plans to raise interest rates next month to tame runaway price growth.

Initially driven by post-pandemic supply shortages and soaring energy prices following Russia's invasion of Ukraine, inflation has now become increasingly broad, affecting everything from food and services to everyday goods.