Eurozone Inflation Rises Above 3% as ECB Raises Rates and Revises Outlook

The European Central Bank announced its interest-rate decision on Thursday, raising its inflation outlook and lowering some growth projections as an energy crisis linked to the Iran war spread across the 21-country currency bloc. According to Jin10, eurozone inflation surged to above 3% last month, and consumer prices were likely to rise further as energy costs increased across a range of goods and services, from vehicle fuel to holiday packages. With inflation already evident and concerns growing about broader second-round effects, the ECB raised interest rates. Financial investors expected the central bank to deliver two additional rate hikes over the next year. The report said higher prices and increased borrowing costs were eroding consumers’ purchasing power and squeezing corporate profit margins, weighing on overall economic growth. It added that the eurozone economy had been only barely expanding even before the war began.