Euro-zone inflation hits record 8.6%, boosting case for big hikes

Euro-area inflation surged to a fresh record, surpassing expectations and bolstering calls for the kind of aggressive interest-rate increases being deployed by central banks across the world.

Driven once more by soaring food and energy costs, consumer prices jumped 8.6 per cent from a year earlier in June – up from 8.1 per cent in May. 

Economists surveyed by Bloomberg saw a gain of 8.5 per cent. The median estimate in the poll has fallen short for 11 of the last 12 months.

The data reflect an escalating squeeze on households and firms across the 19-member currency bloc,