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FRANKFURT – German annual inflation surged to 7.6 percent in March, racing well ahead of expectations, preliminary data from the national statistics office showed Wednesday.
Ahead of the release, a Reuters poll of economists projected inflation to hit 6.7 percent.
Measured for national reporting standards, inflation was up 7.3 percent, the release showed.
Earlier Wednesday, the German government’s council of economic advisers projected inflation to average 6.1 percent this year, more than three times the European Central Bank’s price stability target, before declining to 3.4 percent in 2023.
Eurozone inflation is scheduled to be released on Friday.
The European Commission Economic Sentiment indicator, released earlier Wednesday, also sent a warning signal about further inflation ahead. The survey showed that selling-price expectations for the next three months rose to unprecedented levels in all surveyed business sectors.
This morning, ECB President Christine Lagarde said that the Ukraine war is set to push inflation higher in the near term. At the same time, however, she cautioned that the region is facing significant risks to growth, which will require policymakers to move only gradually in their fight against surging prices.
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