Euro zone inflation reaches 2.4% in February

| March 17, 2011 | 0 Comments

The European Union’s statistics office Eurostat has revealed inflation in the euro zone rose to 2.4% on an annual basis in February, up from January‘s 2.3%.

The rate remains above the European Central Bank’s (ECB) target of just below 2% and marks the third consecutive month inflation has been above target and represents the highest level since October 2008.

The ECB has previously suggested inflation in the 17-member nation will peak in March but will remain above 2% this year.

Many major economies are battling with higher inflation, which is rising due to higher energy, commodity and food prices.

Many central banks across the world have lifted interest rates in a bid to tame inflation but the ECB recently opted to keep interest rates on hold at the record low of 1% for the 21st consecutive month.

However, at this month’s meeting, the ECB said a rise in interest rates is “possible” at the next policy meeting, in view of recent “price shocks”.

IHS Global Insight analyst Howard Archer said the latest figures could lead the ECB to lift interest rates in April.

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