Euro Area Annual Inflation Speeds Up to Record 7.5% in March, Eurostat's Preliminary Estimate Shows

On Wednesday, president of the European Central Bank (ECB) Christine Lagarde said that inflation in the Eurozone is likely to be driven by three factors – high energy prices worldwide, growing pressure in the food sector and certain manufacturing bottlenecks.

Annual inflation in 19 eurozone countries, according to preliminary estimates, accelerated to 7.5% from 5.9% a month earlier, thus, the indicator set a record for the entire history of Eurostat observations, follows from the data of this statistical agency.

"Euro area annual inflation is expected to be 7.5% in March 2022, up from 5.9% in February according to a flash estimate from Eurostat," the statistical agency said in a statement.

Analysts polled by the DailyFX portal expected the rate to speed up only to 6.6%.

Energy prices jumped 44.7% compared to March 2021, against +32.0% in February. Those of food, alcohol and tobacco increased by 5.0% in one year, those of industrial goods excluding energy by 3.4% and those of services by 2.7%, specifies Eurostat. The inflation rate excluding energy and unprocessed food came to 3.2% over one year against 2.9% a month earlier.

Inflation in the eurozone is at its highest level since record keeping for the euro began in 1997.