Europe

Euro zone inflation rate hits new record high as regulators debate higher rate increase

Consumer prices in the bloc jumped 9.1 per cent from a year ago in August

Philip Lane, the ECB’s chief economist, this week urged a “steady pace” of rate hikes to minimise the risk of disruptions. Picture: Getty

Euro zone inflation accelerated to another all-time high, strengthening the case for the European Central Bank to consider a sizeable interest-rate hike when it meets next week.

Consumer prices in the bloc jumped 9.1 per cent from a year ago in August, beating the 9 per cent median estimate in a Bloomberg survey of economists, led by energy and food.

Stripping out those drivers, a gauge of underlying inflation inched up to a fresh high ...