Euro zone inflation hit a new record high in August at 9.1%, exceeding economists’ expectations.
Inflation continues to hit new records just as the European Central Bank mulls another large interest rate hike for next month.to zero on July 21 – its first rate hike in 11 years – and a similar, or larger, hike is now expected on Sept. 8.
"Despite the slowdown in the economy that we will almost certainly be getting, the central banks won't let up on their hiking path," he said. "It looks inevitable that the euro area is headed for a recession. The question is only how deep it will be and how long it will last," he said. The ECB"has some catching up to do," according to the economist.
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