Annual inflation in the Eurozone looks set to leap to a record 7.5% in March, up from 5.9% in February, according to a flash estimate released by Eurostat, the official statistics agency of the European Union.
This rate of inflation far exceeds what the European Central Bank had hoped for which was a meagre “2% in the medium term.” Inflation in the Eurozone has been rapidly driven up by high energy prices. Russia’s invasion of Ukraine has pushed global energy prices skywards, with fears that the conflict may lead to disruptions in supply.
Annual inflation on energy across the Euro Area is up to 44.7% compared to just 32% in February.
Credit: Eurostat
Inflation on food, alcohol, and tobacco has also jumped to 5%, up from 4.2% in February. Eurostat has recorded increases in the price of industrial goods and services across the Euro area.
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The Eurostat estimation also predicts an alarming increase in inflation in several Eurozone nations. In the Netherlands, it is set to rise to 11.9%, 14.8% in Estonia, 15.6% in Lithuania, and 9.3% in Belgium.
On March 30, Belgian statistics agency Statbel gave a slightly more optimistic outlook with annual inflation in Belgium predicted to reach 8.31%, up from 8.04% in March. This is still the highest level of inflation recorded in Belgium since 1983.
