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Eurozone Inflation Reaches Record Levels


March 31, 2008

Eurozone HICP inflation rose to an all-time high of 3.5% y/y in March, reinforcing expectations that the ECB will leave rates on hold.  The ECB policy focus remains on price stability and with threats to the Eurozone financial system the ECB continues to hold a neutral to hawkish stance in regards to monetary policy.  As a result of today’s inflation data the Euro surged to 1.5895 a level just shy of the previous all time.



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