Rises in food and energy costs pushed up inflation in the 15-nation eurozone to 4% in June from 3.7% in May. Confirming estimates made two weeks ago, the Eurostat statistics office said the inflation rate was the highest since measurements began in 1997. A 16% year-on-year rise in energy costs as oil prices headed above $140 a barrel was to blame, Eurostat said. The European Central Bank (ECB) raised interest rates to 4.25% at the start of the month to try to contain inflation. The ECB's target for inflation growth is about 2%, but rising food and fuel prices are making it difficult for the central bank to bring inflation back to this level. At its latest meeting, the ECB increased interest rates to 4.25% from 4% - its first rise in a year - despite evidence that eurozone economic growth is decelerating.
Rises in food and energy costs pushed up inflation in the 15-nation eurozone to 4% in June from 3.7% in May.
Confirming estimates made two weeks ago, the Eurostat statistics office said the inflation rate was the highest since measurements began in 1997.
A 16% year-on-year rise in energy costs as oil prices headed above $140 a barrel was to blame, Eurostat said.
The European Central Bank (ECB) raised interest rates to 4.25% at the start of the month to try to contain inflation.
The ECB's target for inflation growth is about 2%, but rising food and fuel prices are making it difficult for the central bank to bring inflation back to this level.
At its latest meeting, the ECB increased interest rates to 4.25% from 4% - its first rise in a year - despite evidence that eurozone economic growth is decelerating.
