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Record inflation and slowing economy poses an interest rate dilemma for the European Central Bank (Photo: European Commission)

Euro area inflation breaks new record

Inflation in the 15-strong euro area has reached a new record of 4.1 percent, twice as much as the monetary goal of the European Central Bank (ECB), leaving its Frankfurt-based decision-makers in a dilemma over the next interest rates move.

According to a flash estimate issued on Thursday (31 July) by Eurostat, the EU's statistical office, euro area annual inflation is expected to rise by 0.1 percent in July 2008, compared to June's rate of 4.0 percent.

Prices have not climbed as...

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Record inflation and slowing economy poses an interest rate dilemma for the European Central Bank (Photo: European Commission)

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