In the eurozone, consumer prices have continued to rise, pushing inflation to an all-time high. High energy costs are again the strongest driver. According to an initial estimate by the Eurostat statistics in Luxembourg, consumer prices rose by 7.5 percent year-on-year in March.
Even analysts were surprised by the magnitude of the price hike. On average, they only expected inflation to rise from 5.9 percent in February to 6.7 percent. Inflation in the euro area has never been higher since the introduction of the single currency in 1999.
Inflation has risen continuously since last summer, reaching record levels recently. Month-on-month consumer prices rose 2.5 percent in March. Here too, the price jump was much stronger than expected.
Energy again as a price driver
Inflation was again driven by an extremely strong increase in energy prices, which rose by 44.7 percent compared to the same month last year. Food and drink was 5.0 percent more expensive in March than a year ago.
Excluding Energy, Food & Beverages, core consumer price inflation rose to 3.0 percent in March, from 2.7 percent in the previous month. Core inflation is less volatile and is therefore considered by many economists to be a reliable measure of inflation trends.
ECB inflation target broadly exceeded
The European Central Bank’s (ECB) medium-term inflation target of two percent has already been exceeded more than three times. Markets are now determinedly expecting at least one major rate hike this year. Higher key interest rates can curb rising inflation in the eurozone and ensure price stability.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
