Euro zone governments have raised 15 billion euros ($15 billion) from green bonds over the last two weeks, pushing volumes above a year ago even as heightened volatility cuts issuance in the broader market.

Eurozone inflation hit 9.1 percent in August, a record in the history of the single currency and well above the two-percent rate targeted by the ECB.

European markets, euro tumble as Russia fans energy crisis

European Central Bank policymakers meeting on Thursday have a choice between a big 50 basis point interest rate hike, or an even bigger one to contain record high inflation.

The eurozone inflation rate hit a new record in August, official data showed on Wednesday.

European electricity prices soared to new records on Friday, presaging a bitter winter as Russia's invasion of Ukraine inflicts economic pain across the continent.

Stock markets wobbled Friday ahead of a speech by Federal Reserve boss Jerome Powell that is expected to reiterate his plan to ramp up US interest rates to fight soaring inflation.

The Bank of England has raised its benchmark rate from 0.1% to 1.75%, whereas until the financial crisis of 2008 it ranged from 5% to 15%.

World stocks mostly sank Monday and the dollar rallied on concern the Federal Reserve will stick to its interest rate-hiking plans to combat runaway inflation.

Oil prices are set in dollars, so any rise in the currency makes barrels more expensive for importers using other currencies.

Euro zone stocks slipped in volatile trading on Thursday as investors assessed the impact of an aggressive 50 basis point interest-rate hike by the European Central Bank amid growing worries about a recession and a political turmoil in Italy.

The European Central Bank raised interest rates by more than expected on Thursday as concerns about runaway inflation trumped worries about growth, even while the euro zone economy is suffering from the impact of Russia's war in Ukraine.

UK annual inflation hit a new 40-year high at 9.4 percent in June on surging fuel and food prices.

European shares rose on Monday on gains in oil and gas companies, while investors awaited eurozone inflation data after a red-hot consumer price report last week cemented the case for an interest rate hike by the European Central Bank (ECB).

Eurozone inflation hits record, as gas crunch looms

Inflation 'shock' punishes Eurozone economy in June: survey

The pound slumped one percent against the dollar following the announcement, one day after the Federal Reserve hiked US interest rates far more aggressively to fight runaway consumer prices in the world's biggest economy.

The European Central Bank's 'whatever it takes' commitment to bind the euro zone is wearing thin as it tries to 'normalise' monetary policy and give inflation hawks more say in how it goes about it.

The eurozone crisis was caused in the early 2010s when investor fears about the solvency of Greece, Spain, Portugal and Ireland drove their bond yields to levels where they needed ECB support.

The European Parliament votes on Wednesday on eight climate change policies, with the outcome uncertain as concerns about soaring energy costs and inflation collide with Europe's commitments to fight global warming.

The ECB is lagging behind the central banks in Britain and the United States, which have moved aggressively to try to stamp out inflation.

Stocks steadied in Asia on Wednesday as Shanghai emerged blinking from two months of lockdown and a dip in oil prices dangled the prospect of a respite from rising energy prices, but nerves about inflation kept investors and bond markets on edge.

The euro gave back some of its recent gains on Tuesday, but was still set for its best month in a year as markets reposition in anticipation of interest rate increases in Europe and the possibility of a slower pace of U.S.

The range of possible outcomes for growth and inflation is wide and the room for policy errors is very narrow.

Inflation for non-energy industrial goods rose 2.3 percent in January, lower than the 2.9 percent seen in December.

Although her name has come up on wish lists for key EU or United Nations posts, Merkel has said she will leave politics altogether.

The OECD urged monetary policymakers to "communicate clearly" about how far they will tolerate inflation exceeding their targets.

A sign of the growing concern is that Google searches for the word "inflation" have hit their highest levels

The growth outlook was also in focus as Brussels on Thursday raised its forecast for eurozone output this year.

The commission said that it expected inflation, a pressing concern worldwide, to peak at 2.6 percent this year