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

Snowline Gold: The Multi Billion Dollar Valley PEA

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

Arizona Metals: The Disappointing Kay Mine Resource Estimate

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

Trump Wants Aid-for-Minerals Deal With Ukraine

President Donald Trump has proposed exchanging US aid to Ukraine for access to its rare...

Tuesday, February 4, 2025, 03:40:00 PM

Not-so-Funny April Fools: Putin Threatens to Cut Europe’s Gas Supply by Friday

Russian President Vladimir Putin signed a decree on Thursday demanding “hostile” importers of natural gas...

Friday, April 1, 2022, 10:01:00 AM

Goldman Sachs Upgrades Gold Price Forecast in Light of Growing Demand

Goldman Sachs has upgraded its gold price forecast for the current year, citing a shift...

Wednesday, March 9, 2022, 03:09:00 PM

Putin’s Partial Mobilization Starts With Drafting Detained Protestors, Sending Untrained Men To War

Russia is in a hurry–that is obvious. Defense Minister Sergei Shoigu previously disclosed that the...

Thursday, September 22, 2022, 11:36:00 AM

Biden Administration Sanctions Even More Russian-Linked Entities, Including Rosatom

The United States has imposed sanctions on more than 120 targets in response to Moscow’s...

Friday, April 14, 2023, 07:32:28 AM