Inflation across eurozone reaches new all-time high of 8.9%

Inflation across the eurozone reached a new all-time high of 8.9% in July, up from 8.6% in June.

A total of 10 states that use the single currency appear in double-digit territory: Belgium, Estonia, Greece, Spain, Cyprus, Latvia, Lithuania, the Netherlands, Slovenia, and Slovakia.

The data from Eurostat is yet another ominous sign for the bloc's economy, which is gradually slowing down, raising the likelihood of a recession.

Prices in July continued to climb in most countries, pushed by the worsening disruption in global energy markets fuelled by Russia's invasion of Ukraine, according to Euronews.

The upward trend in gas prices has spilled over to other products, including fresh fruits and vegetables.

The July reading shows a timid regression in energy inflation -- from 42% in June to 39.7% in July -- but an increase in all of the other indicators.

The global food crisis, disrupted supply chains, and China's strict zero-Covid lockdowns are also putting pressure on everyday goods and services.

Core inflation, which excludes volatile items and gives a better idea of consumers' actual purchasing power, stood at 4%, the highest mark since the creation of the euro.

In Germany, the EU's industrial powerhouse, inflation rose to 8.5% on a yearly basis, after a small decrease last month (8.2%) that briefly raised hopes of relief.

France's prices rose by 6.8%, while Italy's grew at an 8.4% rate.

The Baltic countries remain particularly affected by the upward trend - Estonia (22.7%), Lithuania (20.8%), and Latvia (21%) - due to their heavy reliance on foreign imports to meet their energy needs.

Partial GDP data, also released on Friday, showed a 0.7% growth across the eurozone and 0.6% in the EU during the second quarter of 2022 compared to the previous period.

"Good news! Euro area economy outperforms expectations in Q2," Paolo Gentiloni, European Commissioner for the economy, said on Twitter. "Uncertainty remains high for the coming quarters: need to maintain unity [and] be ready to respond to an evolving situation as necessary."

Germany registered 0% growth, while Latvia, Lithuania, and Portugal entered negative territory. France avoided a technical recession after expanding by a timid 0.5% rate.

The bloc's GDP data contrasts with that of the United States, which this week posted a second quarter of contraction in a row.