Preliminary data published by Eurostat showed that consumer inflation rose sharply in February and reached a new record high, which will increase pressure on ECB policymakers to take action at the next meeting, which will take place next week.
According to the report, the consumer price index rose by 5.8% per annum after an increase by 5.1% in January. Economists had expected a 5.4% price increase. Meanwhile, on a monthly basis, the consumer price index rose by 2.7% after rising by 2.3% in January. Consensus estimates suggested an increase in the CPI by 2.5%.
Eurostat reported that the core consumer price index - excluding energy and food prices - rose by 2.7% per annum after an increase by 2.3% per annum in January. Economists had expected the index to rise by 2.5%.
The data showed that the acceleration in the growth of the overall consumer price index was due to an increase in the cost of energy (+31.7%), food, alcohol & tobacco (+4.1%), non-energy industrial goods (+3.0%) and services (+2.5%).