Eurozone inflation rises to 2.8% in April

Eurozone inflation rose to 2.8 % in April, the highest level for 30 months, from 2.7 % in March, European Union data showed on Monday. Inflation in the 17-nation area is at its highest since October 2008 when it hit 3.2 %, according to the Eurostat data agency. In April 2010, the rate was 1.6 %. April 2011 was the fifth month running in which inflation was above the two-percent target limit set by the European Central Bank. Inflation in the 17-nation eurozone rose above that ceiling for the first time since late 2008 in December, hitting 2.2 %, before rising to 2.3 % in January and 2.4 % in February. The faster-than-forecast acceleration, fuelled by a spike in energy costs as well as for raw materials, last month prompted the ECB to lift its benchmark interest rate to 1.25 percent for the first time in nearly three years. It then slipped to 2.1 % in November 2008 before slipping below two %. Lowest annual rates across the EU were in Ireland, with 1.5 %, the Czech Republic, at 1.6 %, and Sweden, 1.8 percent. Highest rises were noted in Romania, with 8.4 %, Estonia at 5.4 % and Lithuania and Hungary, both at 4.4 %, highest annual rates per sector were transport, which rose 5.9 %, and housing at 5 %. Highest monthly rates were clothing at 2.6 % and transport, 1.1 %.