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Eurozone inflation hits record 5.1% in January

Steep increases in energy and food costs defy expectations of slowing price growth and add to pressure on ECB

Consumer prices in the eurozone rose by a record 5.1 per cent in January piling more pressure on the European Central Bank to respond with tighter monetary policy.

The new figure defied expectations of a fall in inflation, with economists polled by Reuters expecting a rate of 4.4 per cent.

Steeper increases in the price of energy and food were only partly offset by slower growth in prices of manufactured goods, which meant annual inflation rose from its previous eurozone record of 5 per cent in December, Eurostat said.

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