Eurozone Inflation Soars to 5.8%, Producer Prices Hit Record-High

Eurozone inflation soared to the highest on record last month, fuelling fears that the Russia-Ukraine conflict could push consumer prices even higher, and further adding pressure on the European Central Bank to rapidly adapt its monetary policy.

According to latest data from Eurostat, annual inflation across the eurozone jumped by a record 5.8% in February, up from a reading of 5.1% in the prior month, to substantially above the 5.4% forecast by economists surveyed by Reuters. Last month’s jump in the cost of living puts Europe’s central bank in a difficult position, dividing policy makers between those wanting to scale back ultra-accommodative monetary policy and those that want to await potential economic implications stemming from the Russia-Ukraine crisis.

The Eurostat data pointed to sharp increases in the price of energy and food, as well as surging costs for manufactured goods and services. Energy prices were up by a record 31.7% in February, while the cost of unprocessed food jumped 6.1%. Core inflation, which does not account for volatility from energy, food, alcohol, and tobacco products, rose from 2.3% in January to 2.7% last month.

To make matters worse, new data from Eurostat published on Thursday showed that industrial producer prices skyrocketed by a record 5.2% month-over-month in January— almost double that of economists’ forecasts. Compared to January 2021, producer prices were up by a staggering 30.6%, marking the highest on record and a substantial increase from December’s 26.3% annual jump.

January’s increase in producer prices was largely the result of a 11.6% and 85.6% monthly and annual increase in energy prices, respectively. The sudden increase even came before Russia invaded Ukraine, thus suggesting consumer prices will likely accelerate even higher in the coming months.

Information for this briefing was found via Eurostat and Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Euro Sun: Rovina Copper-Gold Project Secures Some Major Funding

Recommended

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Related News

Crude Oil Jumps Above $120 as EU Members Stall on Russian Oil Embargo, Shanghai Eases Covid-19 Restrictions

Crude prices hit a two-month high this week, as China continued to ease Covid-19 restrictions...

Monday, May 30, 2022, 03:41:00 PM

Desperate for Cannon Fodder, Russia Will Grant Citizenship to Foreigners Who Join Its Army

Russian President Vladimir Putin has signed a decree allowing foreigners who entered into contracts with...

Tuesday, January 9, 2024, 06:41:00 AM

Roman Abramovich, Ukraine Peace Negotiators Allegedly Poisoned in Kyiv

Russian billionaire Roman Abramovich, along with several Ukrainian peace negotiators, were allegedly the target of...

Monday, March 28, 2022, 04:04:00 PM

US, Ukraine Finalize Minerals Agreement After Extended Negotiations

Officials from the United States and Ukraine formalized a bilateral agreement Wednesday establishing a joint...

Thursday, May 1, 2025, 12:57:00 PM

Canada Will Seek Forfeiture Of Roman Abramovich’s Sanctioned Assets

The Canadian government has announced plans to seize US$26 million in sanctioned assets from Russian...

Tuesday, December 20, 2022, 03:04:00 PM