Officials at the European Central Bank have manfully resisted months of pressure from eurozone governments to lower interest rates. Their anti-easing quiver has more arrows in it this week.

Driven by oil, inflation has risen across Europe, and is running slightly above the ECB's 2 per cent target. Never tamed in countries like Spain, prices are also up in Germany and France. At the same time, and despite high unemployment, eurozone labour costs have picked up. Bond and futures markets have reduced their expectations of a rate cut accordingly.