New figures from the European Union show inflation is rising at an alarming rate across the region. It's left analysts tipping a sharper rise in interest rates. The EU says inflation across the 17 countries jumped to 2.7 per cent in March. That's the highest level in 18 months and well above the European Central Bank's target of 2 per cent. The rise has mostly been driven by transport and housing costs.

 

Inflation is also up in the United States but no more than analysts were expecting. A new government report shows that the consumer price index increased 0.5 per cent in March, but it says underlying inflation pressures remain contained. Food and gas prices accounted for almost three quarters of the rise.

 

And taking a look at the US markets now, the Dow and the Nasdaq both closed up. Back home, local shares finished the week in the red. The All Ords lost about two thirds of a per cent. And the Australian dollar is hovering above 105 US cents.