High energy costs in Germany pushed inflation to record levels.
According to leading data, annual inflation rate in line with the EU was recorded as 7.6 percent in March. Economists surveyed by Bloomberg had expected 6.8 percent.
Monthly inflation was 2.5 percent. The expectation for this data was determined as 1.9 percent.
Data showed that inflation in the country has reached its highest level since the early 1990s.
High inflation expectation from Lagarde
European Central Bank President Christine Lagarde said that if the Russia-Ukraine war lasts, its economic cost will be high.
Speaking at an event organized by the Central Bank of Southern Cyprus, Lagarde stated that the war launched by Russia in Ukraine “shadows” the economic outlook in the Eurozone.
Stating that the war caused a loss of confidence and increased energy and food prices, Lagarde said, “Europe is entering a difficult period. In the short term, we will face higher inflation and slower economic growth.” said.
Lagarde, noting that there is significant uncertainty about how big these effects will be and how long they will last, said, “The longer the war (Russia Ukraine war), the higher the costs are likely to be.” she used the phrase.