[Eurozone March Inflation Surpasses 2% Target, ECB Faces Dilemma] Eurozone inflation surged this month, exceeding the European Central Bank's 2% target due to a sharp rise in oil and gas prices. This exacerbates a policy dilemma, as high energy costs weigh on economic growth while also posing the risk of triggering an inflationary spiral. Data released by Eurostat on Tuesday showed that the Eurozone's overall inflation rate rose from 1.9% in February to 2.5% in March, with energy costs increasing by 4.9%. If businesses pass rising costs onto prices and workers demand higher wages due to declining real disposable income, the rapid rise in energy inflation could easily spread. ECB President Christine Lagarde stated last week that if the central bank remains inactive, the public might begin to question its commitment to fighting inflation, which would strengthen the case for rate hikes even if the inflation shock is significant but temporary. Financial markets currently expect the ECB to raise interest rates three times this year, with the first hike likely in April or June. While some officials, including Bundesbank President Joachim Nagel, have suggested that a rate hike as early as April is an option, others, such as Executive Board member Isabel Schnabel, have warned against acting hastily.