Eurozone Inflation Rises to 2.4 percent in March

The increase, which also met private economists' forecasts, means that inflation moved in March away from the European Central Bank's preferred level of close to but less than two percent.

Economists widely expect the ECB to lift interest rates by at least a quarter percentage point next month in part to keep inflation under control.

Headline inflation has been climbing in recent months in the eurozone on surging oil prices, which hit historic highs around 75 dollars a barrel in recent weeks.

However, underlying inflation in the eurozone has remained tame, indicating that high oil prices are having a limited impact on other prices and wages.

Eurostat said that underlying inflation excluding volatile items such as energy, food, alcohol and tobacco prices rose to 1.5 percent in March from 1.3 percent the previous month.

In the 25-nation European Union, headline inflation rose to 2.3 percent in April from 2.1 percent in March.

Source: AFP

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