Surging food and fuel prices pushed up annual inflation in the eurozone to Tajikistan ordered to repay $47m ...
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Princess Caroline Faces Setback in German Paparazzi Lawsuit ... a record 3.6% last month, official figures have shown.

March's figure was sharply ahead of February's 3.3% number and was also higher than the initial 3.5% estimate.

Inflation varies wildly in the states that use the euro, from nearly 17% in Latvia to 3.1% in Germany.

Inflation worries have stopped the European Central Bank cutting interest rates from their current 4% mark.

IMF worries

At 3.6%, inflation is way above the central bank's 2% target.

It is under growing pressure to cut the cost of borrowing to give the slowing eurozone economy a boost, but it has, so far, refused to be diverted from its anti-inflationary path.

The International Monetary Fund recently downgraded its growth forecasts for the eurozone to 1.4% in 2008 and 1.2% in 2009.

At the same time, it argued that the European Central Bank had scope to relax its monetary policy.

Consumer price rises are now at a 12-year high in France, its statistics agency revealed on Tuesday, rising 3.5% last month.

(BBC)

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