Eurozone inflation hit a new record high of 3.3 percent in February as oil prices soared, data showed on Friday, adding to the European Central Bank's dilemma as it faces calls to cut interest rates to boost growth.
European Union statistics office Eurostat revised up February's figure for the 15-nation single currency zone from a previous estimate of 3.2 percent, itself a joint record at the time. A consensus forecast of economists consulted by Reuters had predicted the rate would stay unchanged from 3.2 percent.
Compared with January, prices rose 0.3 percent, Eurostat said in a statement, in line with the consensus forecast. Energy prices jumped 10.4 percent in February from the same month last year. The food and transport components - both sensitive to high oil prices - grew by 5.8 and 5.4 percent respectively.
The ECB, which wants annual inflation to be just below 2 percent, watches the core inflation measure carefully for signs of high oil prices filtering into other sectors of the economy.
In the whole European Union of 27 countries, inflation in February was 3.4 percent year-on-year and 0.4 percent month-on-month. Also on Friday, Eurostat said labour costs in the fourth quarter of 2007 rose by an annual 2.7 percent, picking up speed from the previous three months when costs rose 2.5 percent. Wages and salaries grew by 2.9 percent while non-wage costs were up 2.2 percent, Eurostat said.
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