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Eurozone inflation rate revised up to 2.7% | Eurozone inflation rate revised up to 2.7% |
(about 4 hours later) | |
Inflation in the eurozone rose by more than expected in March to 2.7%, from 2.4% in February, driven by rising transport and housing costs. | Inflation in the eurozone rose by more than expected in March to 2.7%, from 2.4% in February, driven by rising transport and housing costs. |
The revised figure is slightly above the initial estimate released by Eurostat, the European statistics body. | The revised figure is slightly above the initial estimate released by Eurostat, the European statistics body. |
It is the fourth month in a row that inflation has been above the European Central Bank's 2% target. | It is the fourth month in a row that inflation has been above the European Central Bank's 2% target. |
The ECB raised interest rates from 1% to 1.25% at the start of April in order to try and tackle rising prices. | The ECB raised interest rates from 1% to 1.25% at the start of April in order to try and tackle rising prices. |
The surprise rise in the eurozone figure will raise expectations of further interest rate rises this year. | The surprise rise in the eurozone figure will raise expectations of further interest rate rises this year. |
"A further quarter of a percentage point rate hike from the ECB in June looks pretty much inevitable," said Marc Ostwald a markets strategist at Monument Securities. | "A further quarter of a percentage point rate hike from the ECB in June looks pretty much inevitable," said Marc Ostwald a markets strategist at Monument Securities. |
Varying inflation | Varying inflation |
Inflation varied significantly between eurozone members. | Inflation varied significantly between eurozone members. |
Prices in the Republic of Ireland rose at an annual rate of 1.2%, whilst in Estonia, inflation was 5.1%. | Prices in the Republic of Ireland rose at an annual rate of 1.2%, whilst in Estonia, inflation was 5.1%. |
Transport inflation was more than double the headline consumer price index at 5.6%, housing costs also increased at more than 5%. | Transport inflation was more than double the headline consumer price index at 5.6%, housing costs also increased at more than 5%. |
The higher transport costs reflect the significant increase in global oil prices in March. | The higher transport costs reflect the significant increase in global oil prices in March. |
Analysts said that even without rising energy costs the rate of inflation still increased. | Analysts said that even without rising energy costs the rate of inflation still increased. |
Prices around the world have been rising - partly due to the higher cost of oil and other commodities. | |
Consumer prices in March rose in the US by 2.7% and in China by 5.4%. In India, data published on Friday showed that annual inflation hit 8.9% in February. | |
Trade deficit | Trade deficit |
Separate figures from Eurostat also showed a narrowing of the trade deficit for the single currency area in February. | |
Imports of goods and services exceeded exports by 1.5bn euros ($2.2bn, £1.13bn) compared to a deficit in January of 15.6bn euros. | Imports of goods and services exceeded exports by 1.5bn euros ($2.2bn, £1.13bn) compared to a deficit in January of 15.6bn euros. |
The deficit was also unexpected. A Reuters poll of economists had predicted a small surplus. | The deficit was also unexpected. A Reuters poll of economists had predicted a small surplus. |
Detailed figures for January showed that the UK had the largest trade deficit in the 27-member European Union. | Detailed figures for January showed that the UK had the largest trade deficit in the 27-member European Union. |
The UK was also the eurozone's largest trading partner during that month. | The UK was also the eurozone's largest trading partner during that month. |
The higher deficit in January was because of energy imports of gas and oil from countries including Russia and Norway. | The higher deficit in January was because of energy imports of gas and oil from countries including Russia and Norway. |
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