Consumer prices in the 19 countries that use the euro currency rose by an annual 5.8% in February on surging energy costs.
- The inflation reading beat the record of 5.1% set last month, the fourth consecutive month. The latest numbers underscore continuing pain for the continent’s consumers and increase pressure on the ECB to ease high prices.
- Inflation in Europe has been driven by soaring energy prices, and the problem will become worsened by Russia’s invasion of Ukraine.
- Russia, a major oil and gas producer, has been struck with sanctions and export restrictions that increased concerns that supplies could be cut off.
- Energy costs increased even faster last month, rising 31.7% compared with 28.8% in January. Other categories posted smaller gains.
Food costs increased by 4.1%, durable goods increased by 3%, and services prices increased by 2.5%.
Eurostoxx 50 up +1.07%, EUR USD down -0.17%