Inflation hits record high of 7.5% in countries using euro

Inflation hit a record in April for the 19 countries that use the euro as skyrocketing fuel prices boosted by the war in Ukraine weigh on the region’s economic recovery from the coronavirus pandemic.

Annual inflation reached 7.5% for the month, topping the old record of 7.4% from March, statistics agency Eurostat said Friday. The April figure was the sixth consecutive record reported for the eurozone.

Eurostat said energy prices jumped 38%, an indication of how Russia’s invasion of Ukraine is affecting the eurozone’s 343 million people. The jump in European prices reflects some of the same factors that pushed U.S. annual inflation to 8.5% in March, the highest since 1981.

Fears that the war may lead to an interruption of oil or gas supplies from Russia, the world’s largest oil exporter, have pushed up prices for oil and natural gas. The uncertainty comes on top of rebounding global demand during the recovery from the pandemic and a cautious approach to increasing production from oil cartel OPEC and allied countries, including Russia. Bottlenecks in supplies of raw materials and parts have also contributed to higher prices.

Governments as well as households are feeling the effects of high inflation. Germany is dropping a charge for supporting renewable energy on electric bills, saving a family of four around 300euros ($317) a year. Germany’s IG Metall industrial union is proposing an 8.2% annual increase for the country’s steelworkers going into wage talks.