Inflation keeps rising.

In a whole range of euro countries there are now even double-digit inflation rates, in addition to the Baltic states with 11.2 (Latvia) to 15.6 percent (Lithuania) for example also in the Netherlands with 11.9 percent.

For the euro zone as a whole, consumer prices rose by 7.5 percent in March, as the European statistics office Eurostat announced on Friday after an initial estimate.

In February, inflation was still 6.2 percent.

Consequences of the Ukraine war - but not only

Christian Siedenbiedel

Editor in Business.

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Due to the time lag in data collection, the consequences of Russia's attack on Ukraine are now appearing in European inflation figures for the first time.

The increase in energy prices by 44.7 percent was particularly strong, although this is not solely due to the war.

In several countries, the antitrust authorities have the task of checking to what extent the mineral oil companies have contributed to the sharp rise in the price of petrol, for example.

Grocery prices rose by 5 percent and services by 2.7 percent.

According to European calculations, inflation in Germany was already 7.6 percent in March, and 7.3 percent according to national calculations.

According to regional figures, the price of heating oil has risen by more than 90 percent, fuel by around 50 percent, bread by 7 percent and cooking oil by almost 20 percent.

The discounter Aldi announced in Germany that it intends to raise prices again on Monday due to sharply increased costs.

Butter, for example, is said to be 30 percent more expensive.

At the petrol stations, on the other hand, prices had fallen again somewhat in the past few days.

In numerous cities, the price of Super E10 has fallen below 2 euros per liter again.

The national average is 2.02 euros, and that for diesel is 2.11 euros per liter.

Despite everything, the ECB continues to drive on sight

Although inflation is now so high across the euro zone, the European Central Bank is holding back.

It can't do much about high energy prices immediately;

but it could ensure that inflation does not become entrenched.

Many economists, such as the Frankfurt economics professor Volker Wieland, see this as a serious danger and are demanding that the central bank should raise interest rates faster than planned, despite all the uncertainty about the consequences of the war.

The central bank has announced that it will stop buying new bonds in the summer unless something unforeseen happens.

“Some time later”, whatever that means, there will be rate hikes.

ECB chief economist Philip Lane said in an interview this week that the very high inflation rates are a temporary phenomenon.

The current situation is a supply shock, Lane told the American newspaper Politico: "And for these reasons we would still say that most of this inflation will subside."

ECB President Christine Lagarde has argued that Europe is not now entering stagflation, an era of high inflation and economic stagnation.

There are inflation drivers such as energy and food costs, says Lagarde in Nicosia, the capital of Cyprus.

However, it cannot be assumed that these will continue to move "higher and higher".

However, the war in Ukraine is fundamentally causing a loss of confidence and is clouding the economic outlook: "In the short term, we will be confronted with higher inflation and lower growth."