In Defence of Marxism

Surging food and fuel prices pushed up annual inflation in the Euro Zone to a record 3.6% last month, official figures have shown. March's figure was sharply ahead of February's 3.3% number and was also higher than the initial 3.5% estimate. Inflation varies significantly in the 15 states that use the euro, from 6.6% in Slovenia to 1.9% in the Netherlands.

The latest figures pushed the euro to yet another high against the US dollar, making it worth $1.5947. The euro has been boosted by the European Central Bank's (ECB) concerns about inflation and its unwillingness to cut interest rates from their current 4% mark.

At 3.6%, inflation is way above the central bank's 2% target. Consumer price rises are now at a 12-year high in France, its statistics agency revealed on Tuesday, rising 3.5% last month.

The ECB is under growing pressure to cut the cost of borrowing to give the slowing eurozone economy a boost, but it has, so far, refused to cut interest rates for fear of the inflationary consequences. This underlines the risk of recession in the EU. The International Monetary Fund recently downgraded its growth forecasts for the Euro Zone to 1.4% in 2008 and 1.2% in 2009.