High Inflation, Recession Risk Widen ECB Dilemma

High Inflation, Recession Risk Widen ECB Dilemma
A customer shops in a supermarket in Nice, France, on Aug. 18, 2022. Eric Gaillard/Reuters
Reuters
Updated:

FRANKFURT—Eurozone inflation jumped to another record high and will soon hit double-digit territory, heralding a string of big interest rate hikes even as a painful recession appears increasingly certain.

Driven by expensive gas and a devastating drought, consumer prices jumped more than expected in August and further rises are already in the pipeline, suggesting more pain for households and businesses as they burn through their cash reserves.