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Tobacco leaves euro inflation higher

Consumer price inflation in the euro zone spiked up to 2% in April from 1.7% in March, the EU's statistics agency Eurostat said this morning.

The figures were in line with a preliminary estimate given by Eurostat at the end of last month.

The increase brings euro zone inflation back to the medium-term ceiling target set by the European Central Bank. The rate had dipped below the 2% ceiling since the start of the year.

Eurostat said the April rise was driven by higher prices for services and food. Tobacco prices surged 13%. But energy prices remained largely stable despite dearer crude oil.