Euro zone consumer prices rose 0.7 per cent in March from February for an unchanged annual inflation rate of 2.1 per cent, the European Union's statistics office said today.
Eurostat said the monthly rate, in line with economists' expectations and buoyed by a seasonal increase in the price of clothing, had never been higher in the history of its data.
Yet annual inflation remained only fractionally above the European Central Bank's medium-term target level of 2 per cent, and the figures are unlikely to substantially alter market views of future euro zone interest rate movements.
Euro zone inflation also stood at an annual 2.1 per cent in February. "The March month-on-month rate is generally high following the sales periods of January and February," Eurostat said of the 5.4 per cent monthly increase in the price of clothing.
It added in a commentary garments had accounted for 0.26 percentage points of the monthly rise and that fuels for transport had the next largest impact, accounting for 0.10 points.
ECB President Jean-Claude Trichet said after a meeting of Group of Seven finance ministers and central bankers on Saturday that a cut in euro zone interest rates was "not an option".
But he showed little inclination to raise borrowing costs either, saying inflation was under control. The ECB has held rates steady at 2 per cent for almost two years but sluggish growth has encouraged recent calls for a cut, including from the International Monetary Fund, which has said the bank should keep the rate cut option open.
The ECB defines price stability as keeping the euro zone consumer price index below but close to a 2 per cent increase over the medium term and Mr Trichet said it was doing its duty.
Three of the euro zone's top think-tanks said in a report last week that the bloc's economic growth prospects had weakened over the last few months and now looked "very moderate".