Christine Lagarde, President of the European Central Bank.
Daniel Roland | AFP | Getty Images
The cost of living hit a new high in the euro zone last month, raising new questions about how the European Central Bank can stabilize such a rapid rise in consumer prices.
Headline inflation stood at 7.5% in March on an annual basis, according to preliminary data from the European statistics office Eurostat released on Friday.
The figures come at a time when Russia’s invasion of Ukraine has renewed economic uncertainty, with some economists questioning whether the euro zone will enter recession in 2022, something European officials have so far refused to say. to say.
Italian Prime Minister Mario Draghi, for example, said last week that invading Ukraine would cause economic damage, but not recession.
The Eurozone has taken unprecedented steps to punish Russia for its decision to invade Ukraine – such as blocking the sale of luxury goods – and these sanctions are having repercussions for the Eurozone economy itself. same.
In addition, the war has other side effects, including rising energy prices, which drives up inflation across the bloc.
This is breaking news and will be updated shortly.
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