Eurozone Inflation Hits Another All-Time High

Photo: Reuters [via The New York Times]

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.

Nerd narrative

There is a 75% chance that the European Central Bank will raise interest rates in 2022, according to the Metaculus prediction community.


Establishment split

CRITICAL

PRO

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