Surging energy and food prices pushed euro zone inflation to a new high of 3.6 per cent in March, boosting the euro to a record high against the dollar on fading chances of an ECB rate cut in the near term.
The European Union's statistics office today revised up its initial 3.5 per cent estimate for price growth in the 15 countries using the euro to the highest annual inflation rate since measurements for the single currency zone began in 1997.
Month-on-month inflation was 1 per cent, Eurostat said. The latest figures pushed the euro to yet another high against the US dollar, making it worth $1.5947.
The March figures are higher than market consensus pegged to the statistics office's initial estimate and well above the ECB's inflation target of below, but close to 2 per cent.
The data pushed euro single currency to new record highs against the dollar Surging energy and food prices pushed euro zone inflation to a new high of 3.6 per cent in March, boosting the euro to a record high against the dollar on fading chances of a ECB rate cut in the near term.
The European Union's statistics office today revised up its initial 3.5 per cent estimate for price growth in the 15 countries using the euro to the highest annual inflation rate since measurements for the single currency zone began in 1997.
Month-on-month inflation was 1 per cent, Eurostat said.
The March figures are higher than market consensus pegged to the statistics office's initial estimate and well above the ECB's inflation target of below, but close to 2 per cent.
The data pushed euro single currency to new record highs against the dollar and the British pound because it made any near-term growth-supporting interest rate cuts from the European Central Bank even more unlikely.
Economists noted, however, that the ECB targeted inflation over the medium term and that price growth was likely to slow down to the bank's target over that period, leaving room for lower interest rates to support slowing economic growth.