Inflation in 19 nations using euro sets record of 5.8%

Inflation in Europe hit a record high for the fourth month in a row

Europe Inflation (Copyright 2021 The Associated Press. All rights reserved.)

Surging energy costs have driven inflation in Europe to another record high, raising questions about when the central bank should step in to ease the pain to people's wallets while Russia's invasion of Ukraine rattles the global economy.

Consumer prices in the 19 countries that use the euro currency increased by an annual 5.8% in February, the European Union statistics agency, Eurostat, reported Wednesday.

The inflation reading smashed the record of 5.1% set last month — the fourth straight month it has hit an all-time peak — to reach the highest level since recordkeeping for the euro started in 1997.

The latest numbers underscore continuing pain for the continent's consumers and pile more pressure on the European Central Bank as it grapples with when to raise interest rates to ease high prices.

Inflation in Europe, as in other major economies, has been fueled by surging energy prices, and the problem will be complicated by Russia's invasion of Ukraine.

Russia, a major oil and gas producer, has been hit with sanctions and export restrictions that have raised worries that supplies could be cut off, though that hasn't yet materialized.

Before the conflict erupted, the head of the European Central Bank had said record inflation could linger for “longer than expected” and appeared to open the door at least a crack for an interest rate increase this year.

Energy costs rose even faster last month, up by 31.7% compared with 28.8% in January, Eurostat said. In contrast, other categories saw smaller gains. Food costs rose 4.1%, durable goods rose 3% and service prices rose 2.5%.