For the first time in more than eleven years, the European Central Bank has raised interest rates.
The move is aimed at control rising Eurozone inflation.
The Ukraine war and Covid supply chain issues have driven up everyday costs across the world, putting pressure on households.
The ECB increased its key interest rate by 0.5 percentage points to 0.0% and plans further hikes this year.
The rate has been negative since 2014 in a bid to boost the region’s economy after years of weak growth.
However, consumer prices rose at a record 8.6% in the 12 months to June as food, fuel and energy costs soared.
The development comes after the Bank of England and the United States Federal Reserve also put up their rates to try and rein in rising prices.