Euro zone: record inflation in March, at 7.4% - Economic Policy

Euro zone: record inflation in March, at 7.4% – Economic Policy

The euro zone’s annual inflation rate stood at 7.4% in March, compared to 5.9% in February and 1.3% in March 2021, Eurostat announced on Thursday. A first quick estimate from the European Statistical Institute had reported inflation of 7.5% in March in the euro zone. A level of 7.4% is nonetheless a record for the eurozone.

The European Union’s annual inflation rate stood at 7.8% in March, compared to 6.2% in February and 1.7% in March 2021.

The lowest annual rates were observed in Malta (4.5%), France (5.1%) and Portugal (5.5%) while the annual rates the highest were recorded in Lithuania (15.6%), Estonia (14.8%) and Czechia (11.9%).

In Belgium, inflation measured according to the harmonized consumer price index (HICP) reached 9.3% in March compared to 9.5% in February and 1.6% in March 2021.

The largest contributions to the euro area’s annual inflation rate came, unsurprisingly, from theenergy (+4.36 percentage points, pp), followed by services (+1.12 pp),feedalcohol & tobacco (+1.07 pp) and industrial goods excluding energy (+0.90 pp).

The European Union’s annual inflation rate was 7.8% in March, compared to 6.2% in February and 1.7% in March 2021. The lowest annual rates were observed in Malta (4.5%), France (5.1%) and Portugal (5.5%) while the highest annual rates were recorded in Lithuania (15.6%), Estonia ( 14.8%) and in the Czech Republic (11.9%). In Belgium, inflation measured according to the harmonized index of consumer prices (HICP) reached 9.3% in March compared to 9.5% in February and 1.6% in March 2021. The strongest contributions to the rate annual inflation rate in the euro zone came, unsurprisingly, from energy (+4.36 percentage points, pp), followed by services (+1.12 pp), food, alcohol & tobacco (+ 1.07 pp) and industrial goods excluding energy (+0.90 pp).

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