Virginia Mayo
Inflation in the euro zone climbed higher than expected in March to 2.7 per cent year-over-year, as fuel costs boosted the price of transport and housing, according to statistics published on Friday.
High inflation, spurred by commodity and energy prices, prompted the European Central Bank to raise interest rates last week for the first time since the 2008 financial crisis and another rise is expected by July.
The European Union's statistics office, Eurostat estimated that inflation in the 17-country euro area jumped to 2.7 per cent in March, beyond its initial 2.6 per cent forecast and far above the 1.6 per cent recorded a year earlier.
EU officials put the surge in prices down chiefly to the rising cost of fuel for transport and heating oil. The ECB targets inflation of below, but close to 2 per cent and headline price growth has been above that figure since December.
Bank policy makers have stuck to a hawkish message on inflation since last week's meeting but will also have to weigh concerns that further rises will damage the hopes of recovery for the euro's weaker members struggling with high debt.
Ireland, where homeowners are likely to struggle with higher mortgage payments as borrowing rates rise, was also the country which recorded the lowest annual rate of inflation - 1.2 per cent.
Estonia, on the other hand, recorded price rises of 5.1 per cent year-over-year.
Inflation in March in the wider European Union was even higher, at 3.1 per cent, compared to 2 per cent a year earlier as countries like Romania registered an 8-per-cent jump in prices.