On April 1, 2022, the European Union’s statistics agency Eurostat released data showing that inflation in the eurozone had climbed to a record 7.5 % in March. This figure surpassed the previous high of 5.9 % set in February and marked the fifth consecutive month that inflation in the 19 countries using the euro had reached a new peak.
Eurostat noted that the current rate is the highest since the agency began tracking eurozone inflation in 1997. The surge was primarily driven by rising energy prices, which Eurostat said jumped 44.7 % in March, up from 32 % the month before. Higher oil and gas costs stemmed from renewed global demand as economies recovered from the COVID‑19 pandemic and were further amplified by Russia’s invasion of Ukraine, a major energy exporter. Food prices also contributed, increasing 5 % compared with 4.2 % in February.
Business and Consumer Reactions
The pressure on households and businesses was illustrated by the experience of Mina Agib, who operates the Egyptian restaurant Meya Meya in Berlin. Agib reported that the cost of frying oil and meat had risen between 70 % and 100 % recently.
One of his suppliers warned that meat prices would go up by 70 euro cents per kilogram, with another increase expected the following week. To offset these costs, Agib raised the price of some dishes, which prompted a negative online review from a customer upset about paying an extra half euro for a plate of sliced meat, dips, and salad. Agib summed up the dilemma: “Who isn’t affected?” and added, “We’re between a rock and a hard place.
We want to keep customers happy with high‑quality ingredients and homemade food, but we also have to pay the prices our suppliers demand.”
Policy Outlook and Broader Economic Effects
Analysts said the latest figures increase urgency for the European Central Bank to act. The ECB had already accelerated its withdrawal from economic stimulus measures the previous month but had not taken more drastic steps. Jack Allen‑Reynolds, senior Europe economist at Capital Economics, stated that the ECB would soon conclude it could wait no longer before beginning to raise
