In France, the second-largest economy in the Eurozone, inflation continued to rise in March, setting a new record.
EU-aligned CPI increased by 5.1 percent due to Russia’s invasion of Ukraine. This was the highest level since 1997. Inflation also increased by 1.6 percent on a monthly basis. Energy, food, and service sectors made the biggest contribution to price increases. The increase in living costs poses a challenge for President Macron, who started his election campaign to be elected for the second time. The government had announced a 25 billion Euro package, including electricity and natural gas aid, to combat inflation.
According to the data released yesterday, inflation in Spain was also on 10 percent. Inflation is putting pressure on the European Central Bank to raise interest rates.