Financial Times FT.com

Eurozone inflation soars to 14-year high

By Ralph Atkins in Frankfurt

Published: January 31 2008 11:04 | Last updated: January 31 2008 17:53

Eurozone inflation has surged to a 14-year high of 3.2 per cent, strengthening the European Central Bank’s case for resisting interest rate cuts even as the region’s growth slows.

In spite of sharp cuts in US interest rates by the Federal Reserve, the ECB is widely expected to leave its main interest rate unchanged at 4 per cent after its meeting next week.

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