The rate of inflation for euro zone goods and services raced towards an all-time high in April, a closely-watched growth indicator said today.
Prices charged by firms surveyed across euro zone showed 'the largest monthly jump since the all-time high seen during the oil price peak of 2008,' said Chris Williamson, chief economist with London-based researchers Markit.
The picture emerged from Markit's composite euro zone index for manufacturing and services output, which otherwise showed job creation hitting a three-and-a-half-year high, albeit from a high base of unemployment.
Overall, the closely-watched indicator rose only slightly to 57.8 points from 57.6 points in March, signalling an expansion in economic activity for the 21st consecutive month. Any score above 50 equates to growth.
Expansion throughout France's economy overtook that of Germany, hitting its fastest rate since September 2000 thanks to a spike in the services sector, the data also said.
But broadly speaking, the euro zone 'upturn remains all-too dependent upon France and Germany,' Williamson underlined.
Figures out at the end of last week showed euro zone inflation gaining 'alarming' momentum, leaving analysts tipping a sharper rise in interest rates by the European Central Bank.
The annual rate of inflation across the debt-ravaged euro zone hit 2.7% in March - and 3.1% for the full, 27-state European Union, including non-euro Britain and Poland.
The faster than forecast acceleration showed prices shooting upwards right across Europe - fuelled by a spike in energy costs as well as for raw materials such as cotton. Little over a year ago, the figure was just 0.8%.
Euro zone trade deficit rises in February - ECB
The euro zone's current account deficit widened in February, the European Central Bank said today, also sharply revising upward its deficit figures for January.
According to the ECB's data, the current account deficit for the euro zone was €7.2 billion in February compared to €5.6 billion in January.
The current account on the balance of payments, which includes imports and exports in both goods and services plus capital transfers, is a closely tracked indicator of a country's or area's ability to pay its way in the world. It is crucial for the long-term confidence of investors and trading partners.
The data have historically been subject to large revisions. The ECB's preliminary figure for January was €700m.
Analysts said that the euro zone was importing more goods at higher prices, due to rising oil prices. The euro zone's deficit has widened considerably over the year.
Over the last 12 months, the deficit total amounted to €49.6 billion, or 0.5% of gross domestic product. This is much bigger than the previous year, when the deficit came to €15.9 billion.
The ECB said the widening of the deficit was due primarily to a large drop in the euro zone's goods surplus from €44.4 billion to €7.8 billion.
The euro zone last posted a current account surplus in January 2010.
