Record high inflation sparks debate about interest rates

Consumer prices in the eurozone countries climbed to four percent in June, reaching twice the rate of the European Central Bank's inflation goal. The surge has instantly sparked off a debate about whether the Frankfurt-based bank should increase interest rates.

Speaking to the European Parliament on Monday (30 June), the EU commissioner in charge of economic and monetary affairs, Joaquin Almunia, expressed "deep concern" over the highest inflation rate seen since 1999.

"There wil...