Eurozone inflation at new record

Eurozone inflation surged to a new record in January at 3.2%, official data showed.

Consumer prices are now growing at their quickest rate in the 15-nations eurozone since records began in 1997.

The rate is much higher than the European Central Bank's target of 2%.

The ECB faces the tough challenge of controlling inflation, which can be done by raising interest rates, at a time when the economy is slowing.

The problem is similar in the UK.

The inflation numbers come as confidence in the euro bloc's economy among businesses and consumers slumps to a two-year low.

A European Commission index of sentiment fell to 101.7 this month, the lowest since January 2006.


http://news.bbc.co.uk/2/hi/business/7219572.stm