Euro annual inflation rate went up to 7.5% in March, according to data released by Eurostat.
Eurostat, the statistical office of the European Union (EU), said the inflation rate is up by 1.6% compared to the 5.9% recorded in February.
Energy had the highest annual rate in March with 44.7% compared to the 32% in February.
Food, alcohol, and tobacco rate came in next with 5% compared to the 4.2% recorded in February.
Non-energy industrial goods and services were also included in the main components of the euro area inflation with rates of 3.4% and 2.7%, respectively.
European Central Bank President Christine Legarde, in her speech at an event organized by the Central Bank of Cyprus on Wednesday, admitted that how much inflation rises and growth slows will ultimately hinge on how the conflict and sanctions evolve on Russia and Ukraine.
“Clearly, the longer the war lasts, the higher the economic costs will be and the greater the likelihood we end up in more adverse scenarios. This is why we are continually monitoring the incoming data and updating our analysis accordingly,” Legarde said.
Legarde added during her speech that the right policy response can help mitigate the economic consequences of the war and manage the high levels of uncertainty that the Eurozone is facing.
She mentioned tax cuts and subsidies to offset the short-term effects of higher energy prices and sanctions.
“And rules at the EU level are being loosened so that governments can take the necessary measures to protect their people,” she added.
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