Euro zone inflation hits yet another record high as food and energy prices soar
CNBCJUL 2022
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.
Metaculus Prediction
There is a 75% chance that the European Central Bank will raise interest rates in 2022, according to the Metaculus prediction community.
