Prices in the euro area are rising significantly. The increase in energy prices is particularly pronounced.
(Photo: dpa)
Dusseldorf/Frankfurt The inflation rate in the euro area continued to rise in March. Consumer prices increased by 7.5 percent compared to the same month last year, as the European statistical office Eurostat announced on Friday based on an initial estimate. This is the highest level since the introduction of the euro. Experts surveyed by Reuters had only expected a value of 6.6 percent. In February, the inflation rate was 5.9 percent.
For Germany, the Federal Statistical Office had already reported an inflation rate of 7.3 percent for March. However, the calculation method for Germany differs from that at European level.
Inflation was already higher than expected at the beginning of the year. It is currently being fueled further by the consequences of the war in Ukraine and the associated sanctions. Russia is not only an important exporter of oil and gas to Europe, but also of wheat and other raw materials that are needed for fertilizers or catalysts, for example. Prices there have recently risen significantly.
This also puts the European Central Bank (ECB) in a difficult position. Inflation is well above its medium-term target of two percent for the currency area. At its March meeting, the central bank decided to tighten monetary policy somewhat more quickly by ending its bond purchases earlier. This is a prerequisite for an interest rate hike. However, the Ukraine war is also causing additional economic uncertainty, which tends to speak against such a step.
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