Key market eurozone inflation gauge highest since 2012; UK inflation soars to 30-year high

A KEY market gauge of long-term eurozone inflation expectations rose above 2.40 per cent on Wednesday (Apr 13), scaling a 10-year peak with a higher-than-expected inflation reading in Britain adding to signs of persisting price pressures.

It is the highest the 5-year breakeven forward has risen since 2012, according to data from the European Central Bank, and far above the 2 per cent target of the bank, which meets on Thursday.

"It will definitely be testing their resolve and their stance. It's definitely a problem. There's a lot of arguments that they've put forward to diminish the importance of this indicator," said Antoine Bouvet, senior rates strategist at ING.