Eurozone inflation hits record highs

The term inflation describes a steady rise in prices. In short, inflation occurs when the prices of a large number of goods, products and services rise and never fall again. When that happens, the purchasing power of money dwindles – Gerd Altman

In the eurozone, consumer prices continue to rise. They reached record highs in February due to energy costs.

According to the second data from the Statistics Office Eurostat, consumer prices rose 5.9 percent year-on-year. This means that the first estimate has been revised upwards by 0.1 points. Eurozone inflation has never risen since the introduction of the common currency in 1999.

According to the latest data, energy prices have risen by 32 per cent year-on-year. Food and beverages are 4.2 percent more expensive than they were a year ago.

Excluding energy, food and luxury goods, consumer prices rose by 2.7 per cent – up from 2.3 per cent in the previous month. Core inflation is volatile, so it is considered by many economists as a reliable measure.