High corporate profits are driving inflation in the euro area

European Central Bank in Frankfurt am Main

The profits of companies in the euro area have risen sharply recently.

(Photo: dpa)

Frankfurt Inflation in the euro area is falling, but it is reaching more and more areas of the economy. This fuels the debate about the causes of the price surge. The so-called core inflation and the pricing of the companies are more and more in the focus.

Core inflation excludes particularly volatile energy and food prices. In March, it rose to a new record of 5.7 percent in the euro area compared to the same month last year. This was announced by the statistics office Eurostat on Friday. In February it was 5.6 percent. The overall inflation rate, on the other hand, fell significantly to 6.9 percent after 8.5 percent in February.

>> Read here: Inflation in the euro area is falling significantly

The high level of core inflation is currently causing particular concern to those responsible at the European Central Bank (ECB). Because it is considered a good indicator for the medium-term price development. One factor behind rising core inflation is the sharp rise in corporate profits.

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