Inflation hits record 3.7% in Eurozone

Annual inflation hit 3.7% in May across the 15 states that make up the Eurozone, and the European Central Bank (ECB) has warned it will raise interest rates to control the problem. The figure is the highest since records began in 1996, when Eurostat began recording inflation across the European states. Inflation has increased from 3.3% in April, and is almost double the 1.9% seen in May 2007. Food and fuel prices were primarily responsible for the sharp spike, with food costs growing 6.4%, while fuel prices have increased by 5.9%. The ECB has kept rates at 4% since June 2007 but may...