Consumer prices have surged by 8.9% in the last year, Eurostat reports, up from 8.6% in June, as the cost of living squeeze intensifies.

Annual inflation in the eurozone’s 19 countries rose to 8.9% in July, an increase from 8.6% in June, according to numbers published Friday by the European Union statistics agency.

For months, inflation has been running at its highest levels since 1997, when record-keeping for the euro began, leading the European Central Bank to raise interest rates last week for the first time in 11 years to tamp down prices.

The euro-area economy managed to expand by 0.7% from April through July over the previous quarter, contrasting with the contraction in the United States, where fears are growing of a recession. The outlook is just as gloomy for Europe.

Energy is expected to have the highest annual rate in July (39.7%, compared with 42.0% in June), following the jump in gas prices following the Ukraine war.

But inflation was broader -- food, alcohol & tobacco prices have soared by 9.8% in the year to July (up from 8.9% in June) Non-energy industrial goods cost 4.5% more (up from 4.3%), while services inflation jumped to 3.7% (from 3.4% in June).

Analysts say the economic growth tied to a rebound in tourism could be the last glimmer of upbeat news, with inflation, rising interest rates and a worsening energy crisis fueled by the war expected to push the euro area into recession later this year.

“This is as likely to be as good as it will get for the eurozone for the foreseeable future,” Andrew Kenningham, chief Europe economist for Capital Economics, wrote in an analyst note.