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Euro zone June inflation hits new record high at 4%

(Xinhua)
Updated: 2008-06-30 23:59

BRUSSELS  -- The annual inflation for the 15-member euro zone in June is expected to hit a record-high 4 percent, surpassing the 3.7 percent in May, according to a flash estimate issued by Eurostat, the statistical office of the European Union (EU) Monday.

Rising food and fuel prices are among the major factors that contribute to the record high inflation, which is higher than analysts' forecasts of a 3.9 percent increase.

Euro area inflation is measured by the Monetary Union Index of Consumer Prices (MUICP). To compute the MUICP flash estimates, Eurostat uses early price information relating to the reference month from member states for which data are available as well as early information about energy prices.

The flash estimation procedure for the MUICP combines historical information with partial information on price developments in the most recent months to give a total index for the euro area. No detailed breakdown is available.

The euro area comprises Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovenia and Spain.