As energy sanctions against Russia continue to backfire, some economists warn the EU could be heading for a deep recession.

The European Central Bank has confirmed its intention to hike interest rates at the policy meeting next month. The move is aimed at bringing down soaring prices across the eurozone.

Prices in the euro zone soared with the inflation rate hitting a record high of 8.1% in May, the seventh consecutive month of record high inflation in the 19 countries that share the Euro.

Euro zone inflation rose to a new record high last month, defying expectations for a big drop and piling pressure on the European Central Bank.

Amid a record 4.9 percent surge of annual consumer inflation in 19 European Union last month, the European Central Bank declares plans to scale back its crisis bond-buying, ruling out raising interest rates next year.

Rising inflation across the eurozone will take centre stage as European Central Bank governors meet on Thursday to debate the future of the bank's monetary policy.

European stocks edged lower Thursday in cautious trade ahead of the latest European Central Bank decision.