The annualized Eurozone Harmonised Index of Consumer Prices (HICP) surged by 7.5% in March, coming in much higher than the previous reading of 5.9%, the latest data published by Eurostat showed on Friday. The consensus forecast was for a hotter reading of 6.6%.

The core figures arrived at 3.0% YoY in March when compared to 3.1% expectations and 2.7% booked in February.

The Euro area figures are reported a couple of days after Germany’s annual inflation for March rose way past expectations of 6.7%, arriving at 7.6% following a 5.5% increase reported in February.

The bloc’s HICP figures hold significance, as it helps investor assess the chances that the European Central Bank (ECB) might signal a faster than expected path for policy tightening. 

Key details (via Eurostat)

“Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in March (44.7%, compared with 32.0% in February), followed by food, alcohol & tobacco (5.0%, compared with 4.2% in February), non-energy industrial goods (3.4%, compared with 3.1% in February) and services (2.7%, compared with 2.5% in February).”

EUR/USD reaction

EUR/USD failed to show any reaction to the big jump in the Eurozone inflation figures. The spot is losing 0.07% on the day, currently trading at 1.1058.