Euro zone inflation hits new record high

STORY: Soaring energy costs drove euro zone inflation to a new record high in July.

Figures released Thursday (August 18) showed a rise of 8.9% year-on-year.

It is the fastest pace since the euro currency was created in 1999.

The costs of oil and gas have risen since Russia invaded Ukraine earlier this year.

Food, alcohol and tobacco prices also contributed to the final numbers.

The ECB's headline inflation target is 2%.

Last month, the bank started a tightening cycle after years of ultra-loose monetary policy.

But the prices of services still went up 3.7% year-on-year.

That sector makes up more than two-thirds of the euro zone's GDP.

Industrial goods were also 4.5% more expensive than 12 months before.

The euro zone figures come just days after the UK announced it too had record inflation.

Britain's figure was above 10%.