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So much for those “downside risks”.

The euro has jumped in response to eurozone data on Friday morning showed core inflation climbing to its highest level since 2013.

Headline inflation levels have already been within sight of the European Central Bank’s 2 per cent inflation target for a few months, but core inflation – which strips out volatile energy prices – has been much more sluggish, encouraging the ECB to resist pressure to scale back its stimulus programme and raise interest rates.

However, figures released this morning showed core inflation finally beginning to catch up, jumping to 1.2 per cent in March from 0.7 per cent the prior month.

That has helped the euro climb 0.6 per cent, to $1.0939. It is also 0.3 per cent stronger against the pound, despite sterling’s gains against other currencies this morning.

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