ECB Alarm bells ring – EU hit with eye-watering levels of inflation with one member state hitting 15.6%.

It’s squeaky bum time for the EU after the ECB released a report showing that the average inflation rate in the EU rose to 7.5% in March, a record high for the bloc of nations.

They state that the rapid increase in inflation has been caused by hikes in the cost of energy, food, and fuel. Though inflation started well before the war in Ukraine, it does seem to have sped up the problems for Brussels.

A report from Eurostar showed a 44.7% increase in March energy prices compared to a 32% increase in February. With a 7.5% inflation rate being an average across the bloc, the hardest EU country hit is Lithuania, whose inflation rate is at an eye-watering rate of 15.6%.

Not far behind Lithuania are the Dutch, whose inflation rate is at 11.9%.

Following Lithuania and Holland, many of the EU powerhouse countries are also in trouble. Germany’s inflation rate is at 7.6%, France’s is at 5.1%, and Italy’s is at 7.0%, with Spain at 9.8%.

As we move forward, the ECB predicts that inflation rates will be much higher due to their ties with Russia for gas and oil. This leaves the ECB with a major headache on policy because if they choose to tighten their grip on printing money, it will most certainly crash the EU economy, yet if they don’t do anything, inflation will continue to rise.

With all this being said, the U.K. could also see an 8% increase in inflation come spring, but luckily, with the U.K. leaving the EU, they will have more leavers to pull to get the U.K. out of the mess. It all depends on U.K. government policies going forward.