European shares hit new six-week low as inflation sets another record high

European shares slipped on Wednesday as data showed euro zone inflation in August hit another record high, while energy concerns intensified after Russia began halting gas flows to Germany via a key supply route, Reuters reported.

The continent-wide STOXX 600 .STOXX fell 0.8% to new six-week lows after trading higher at the open, extending losses to a fourth straight day. Energy stocks .SXEP led losses as oil prices continued to slide on recession fears.

The benchmark STOXX 600 index is on course for a monthly loss of 5% on fears of hawkish central bank policies and escalating risks of recession and energy rationing in the region.

Euro zone inflation EUHICF=ECI rose to another record high of 9.1% this month from 8.9% a month earlier, beating expectations and staying well clear of the European Central Bank’s (ECB) 2% target. The euro zone stocks index .STOXXE fell 0.8% to hover near six-week lows.

This is yet another eye-watering number, showing consumers were feeling the pain even before Russia tightened its grip on its energy market, said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.