16-04-2008
New rise in European inflation levels
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Inflation levels have risen across the Eurozone, it has emerged.
Official statistics have revealed an increase in the rate of inflation, with the measure rising to a high of 3.6 per cent over the course of March 2008.
The rise in inflation has been blamed upon rising fuel and food prices.
"The high level is having an adverse effect on consumer confidence. Containing these inflationary pressures is therefore crucial," said Juergen Stark, executive board member of the European Central Bank.
"Once inflation expectations have come unanchored and a price-wage spiral has started, restoring stability will be very costly in economic terms."
Mr Stark made his comments during a conference in Brussels.
In February, eurozone inflation was at a rate of 3.3 per cent, which contrasts with inflation in the UK which, according to the Bank of England, is currently at a rate of 2.5 per cent.