Thursday, July 31, 2008
Up Up & Away for such a Busy Day
Yearly inflation in the 15 euro nations rose to a new record high of 4.1 percent in July, the EU statistical agency Eurostat reported Thursday. Prices have not climbed as fast since inflation records started in 1996 for the countries that eventually formed the euro. Soaring fuel and food prices are Europe's biggest economic problem, eating into household spending - one of the engines of economic growth - as people steer away from major purchases and luxury goods. Accelerating prices and signs that growth is stalling create a major dilemma for the European Central Bank, which acted last month to cool inflation by hiking borrowing costs for the first time in a year.