German inflation rises to 2.7 percent in March, driven by soaring energy costs

Inflation in March was 2.7 percent, according to preliminary estimates, compared with the same period last year. The figure was slightly above market expectations (2.6 percent according to Bloomberg) and is mainly due to soaring energy costs. This, in turn, is linked to developments in the Middle East, which have pushed up oil and gas prices.

Spain has also reported a sharp rise in inflation, and markets now expect the European Central Bank (ECB) to raise its key interest rate as early as April.