The European Union's official statistics agency Eurostat said on Wednesday (March 2) that Eurozone inflation had soared to a record high in February. The inflation was at 5.8 per cent and energy prices surged.

The acceleration, from 5.1 percent in January, was announced as oil and gas prices rocketed even higher over fears about the impact on supplies from Russia's invasion of Ukraine.

Brent crude touched USD 110 a barrel for the first time since 2014. WTI followed suit hours later. It hit its highest level since 2013. European natural gas prices similarly hit a record level.

Also Read | <a href="https://www.wionews.com/world/russian-talkshows-describe-reports-of-military-losses-as-fake-458218">Russian talkshows describe reports of military losses as 'fake'</a>

The surge in inflation comes at a difficult time for European leaders as they warn their citizens of the "price to pay" from tough sanctions imposed on Russia, the EU's leading foreign gas supplier.

Policymakers fear soaring inflation could choke off the EU's recovery from the coronavirus pandemic.

Eurostat said energy prices in February jumped 31.7 percent, faster than the 28.8 percent recorded in January.

Food prices were up 4.1 percent in February, compared with 3.5 percent the previous month.

Analysts at Capital Economics predicted inflation would hit six percent in the coming months before falling back to around four percent, "most likely" at the end the year.

That is still double the European Central Bank's target of around two percent.

Capital Economics warned that not only energy prices, but also food prices could rise further due to the conflict in Ukraine, a major wheat exporter.

The EU and Western allies have imposed sweeping sanctions on Moscow over President Vladimir Putin's invasion.

They have unleashed turmoil on Russia's economy and forced the Kremlin to impose capital controls.

(With inputs from agencies)

The European Union's official statistics agency Eurostat said on Wednesday (March 2) that Eurozone inflation had soared to a record high in February. The inflation was at 5.

The European Union's official statistics agency Eurostat said on Wednesday (March 2) that Eurozone inflation had soared to a record high in February. The inflation was at 5.8 per cent and energy prices surged. The acceleration, from 5.1 percent in January, was announced as oil and gas prices rocketed even higher over fears about the impact on supplies from Russia's invasion of Ukraine. Brent crude touched USD 110 a barrel for the first time since 2014. WTI followed suit hours later. It hit its highest level since 2013. European natural gas prices similarly hit a record level. Also Read | Russian talkshows describe reports of military losses as 'fake' The surge in inflation comes at a difficult time for European leaders as they warn their citizens of the "price to pay" from tough sanctions imposed on Russia, the EU's leading foreign gas supplier. Policymakers fear soaring inflation could choke off the EU's recovery from the coronavirus pandemic. Eurostat said energy prices in February jumped 31.7 percent, faster than the 28.8 percent recorded in January. Food prices were up 4.1 percent in February, compared with 3.5 percent the previous month. Analysts at Capital Economics predicted inflation would hit six percent in the coming months before falling back to around four percent, "most likely" at the end the year. That is still double the European Central Bank's target of around two percent. Capital Economics warned that not only energy prices, but also food prices could rise further due to the conflict in Ukraine, a major wheat exporter. The EU and Western allies have imposed sweeping sanctions on Moscow over President Vladimir Putin's invasion. They have unleashed turmoil on Russia's economy and forced the Kremlin to impose capital controls. (With inputs from agencies)

Eurozone inflation hits record high due to soaring energy prices

Eurozone consumer prices rose to a stronger 0.4 per cent in September, official data said, offering hope that a disputed programme by the ECB to stimulate the economy may be finally delivering.

Eurozone unemployment meanwhile was unchanged at 10.1 per cent in August, the Eurostat statistics agency said.

Both figures were in line with forecasts by analysts surveyed by financial services company Factset.

(AFP)

The figures offer some hope that a disputed programme by the ECB to stimulate the economy may be finally delivering

Eurozone consumer prices rose to a stronger 0.4 per cent in September, official data said, offering hope that a disputed programme by the ECB to stimulate the economy may be finally delivering. Eurozone unemployment meanwhile was unchanged at 10.1 per cent in August, the Eurostat statistics agency said. Both figures were in line with forecasts by analysts surveyed by financial services company Factset. (AFP)

Eurozone inflation rises to 0.4 per cent in September: Eurostat

Economic stagnation in France and Italy contributed to a slowdown in growth in the euro-zone from April to June after a strong performance in the first three months of the year, estimates showed today. 
 
Gross domestic product in the 19-country currency bloc expanded 0.3 per cent in the second quarter from the first and was up 1.6 per cent compared with the same quarter last year, statistics agency Eurostat said, confirming market expectations and its own initial data issued in late July. 
 
The quarterly rate of growth halved from January-March&#39;s 0.6 per cent expansion, while the annual rate of growth was only marginally slower than the first quarter&#39;s 1.7 per cent. 
 
The slowdown was mainly due to France and Italy reporting no growth in the quarter, offsetting relatively robust readings for Spain and the Netherlands of 0.7 per cent and 0.6 per cent respectively. 
 
Italy&#39;s standstill was below the expected 0.2 per cent growth and adds to the woes of Prime Minister Matteo Renzi, who in autumn faces a constitutional referendum on which he has staked his job. 
 
Growth in Germany, the bloc&#39;s biggest economy, slowed to 0.4 per cent in the second quarter from 0.7 per cent in the first, but that was better than the 0.2 per cent consensus forecast of economists polled by Reuters. 
 
&quot;Today&#39;s German and Dutch flash GDP estimates surprised to the upside, more than offsetting a flat GDP print in Italy,&quot; Marco Protopapa, an&nbsp;economist at JPMorgan, said in a note. 
 
The stronger-than-expected German data helped the bloc as a whole avoid a downward revision from Eurostat&#39;s preliminary estimates for the quarter, as some economists had feared. 
 
&quot;The fact that Q2&#39;s growth rate was not revised down from the &#39;preliminary flash&#39; estimate of +0.3 per cent was something of a relief after the additional national data released earlier this morning,&quot; said Jonathan Loynes of Capital Economics. 
 
The euro zone&#39;s smaller economies fared well. Belgium&#39;s GDP grew 0.5 per cent on the quarter, faster than the 0.2 per cent rise in the first three months of the year. 
 
Greece emerged from a mild recession in the first quarter, posting 0.3 per cent growth in the April-June period. 
 
The European Union economy grew slightly faster than that of the euro zone, expanding 0.4 per cent on the quarter and 1.8 per cent compared with the same period last year. 
 
(Reuters)

Gross domestic product in the 19-country currency bloc expanded 0.3 per cent in the second quarter from the first, Eurostat said

Economic stagnation in France and Italy contributed to a slowdown in growth in the euro-zone from April to June after a strong performance in the first three months of the year, estimates showed today. Gross domestic product in the 19-country currency bloc expanded 0.3 per cent in the second quarter from the first and was up 1.6 per cent compared with the same quarter last year, statistics agency Eurostat said, confirming market expectations and its own initial data issued in late July. The quarterly rate of growth halved from January-March's 0.6 per cent expansion, while the annual rate of growth was only marginally slower than the first quarter's 1.7 per cent. The slowdown was mainly due to France and Italy reporting no growth in the quarter, offsetting relatively robust readings for Spain and the Netherlands of 0.7 per cent and 0.6 per cent respectively. Italy's standstill was below the expected 0.2 per cent growth and adds to the woes of Prime Minister Matteo Renzi, who in autumn faces a constitutional referendum on which he has staked his job. Growth in Germany, the bloc's biggest economy, slowed to 0.4 per cent in the second quarter from 0.7 per cent in the first, but that was better than the 0.2 per cent consensus forecast of economists polled by Reuters. "Today's German and Dutch flash GDP estimates surprised to the upside, more than offsetting a flat GDP print in Italy," Marco Protopapa, an economist at JPMorgan, said in a note. The stronger-than-expected German data helped the bloc as a whole avoid a downward revision from Eurostat's preliminary estimates for the quarter, as some economists had feared. "The fact that Q2's growth rate was not revised down from the 'preliminary flash' estimate of +0.3 per cent was something of a relief after the additional national data released earlier this morning," said Jonathan Loynes of Capital Economics. The euro zone's smaller economies fared well. Belgium's GDP grew 0.5 per cent on the quarter, faster than the 0.2 per cent rise in the first three months of the year. Greece emerged from a mild recession in the first quarter, posting 0.3 per cent growth in the April-June period. The European Union economy grew slightly faster than that of the euro zone, expanding 0.4 per cent on the quarter and 1.8 per cent compared with the same period last year. (Reuters)

Eurozone growth goes sluggish as Italy and France stall

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