Berlin - European consumer prices jumped to a record 4.2 per cent in July, data to be released Thursday is predicted to say, increasing the pressure on the European Central Bank as it faces up to the threats posed by surging inflation and slumping growth.

Analysts' forecasts for consumer prices in July, which are to be released by European Union's statistics office Eurostat, would leave inflation in the 15-member eurozone at more than double the ECB's target of "close to, but just below 2 per cent".

Inflation in the currency bloc stood at 4 per cent in June as higher food and energy costs helped to drive up consumer prices around the world.

Evidence of renewed inflationary pressures emerging in the eurozone prompted the ECB to hike rates for the first time in more than a year earlier this month with the bank raising its refinancing rate by 25 basis points to 4.25 per cent.

Some analysts believe that the ECB might follow up this month's rate rise with another monetary tightening later in the year.

But signs that the economic mood is darkening across Europe are likely to make it more difficult for the ECB's 21-head rate-setting council to deliver a further increase in borrowing costs in the coming months.

European economic confidence recorded its biggest fall since the 9/11 terrorist attacks on the United States, the European Commission's closely watched index gauging the eurozone economic mood said Wednesday.

Earlier this month Eurostat revised down its first-quarter growth estimate for the eurozone from a previous 2.2 per cent to 2.1 per cent.

The move came amid the release of a new batch of data pointing to slowing growth continuing in the second quarter with industrial production chalking up its biggest fall in nearly 16 years in May.

Seasonally adjusted industrial production in the eurozone fell month on month by 1.9 per cent in May, Eurostat said. (dpa)