Shares rise, but ECB interest rate hikes have 'a long way to go'

Analysts also warn of the chunky and apparently broad-based rise in core inflation, from 5.3% in January to a record high of 5.6%

The European Central Bank in Frankfurt whose president, Christine Lagarde, said rates will have to rise higher and stay higher for some time. Stock picture

European shares rose, boosted by consumer and energy companies, but data suggesting eurozone inflation remained stubbornly high has bolstered fears of more European Central Bank rate rises.

The strength of core inflation means the ECB has “a long way to go” before easing up in its fight against inflation by hiking interest rates, said Jack Allen-Reynolds, chief eurozone economist at Capital Economics.