Inflation in the euro area reached 8.9% on an annual basis in July as global investment banks said it was more than was likely to enter recession than the USA.

The rate of inflation was up from an already record breaking 8.6% in June for countries which use the euro currency, far above the European Central Bank’s target of 2%.

The European Central Bank raised interest rates for the first time in 11 years last month by 0.50% to try to control spiralling inflation as energy costs soared in the wake of the Russian invasion of Ukraine.

(Reporting by Imogen Lillywhite; editing by Daniel Luiz)