Inflation in the 17 countries that share the euro reached the highest level in 30 months to open the second quarter as rising energy prices boosted overall price growth, according to The Wall Street Journal. On Monday, the European Union reported that inflation in the eurozone reached 2.8% in April year-over-year, up from a 2.7% annual gain in the previous month. The annual rate of inflation was this fastest since October 2008, and inflation in the entire EU was up to 3.2% in April. The latest increase is likely to increase pressure on the European Central Bank to increase the benchmark interest rate further from the 1.25% set at the April meeting.

The surge in prices comes as the growth trends in leading and peripheral eurozone economies continue diverge, which some fear could further contribute to rapid price growth. Stefan Schneider of Deutsche Bank said, “Given the high weight of core countries, the ECB has to continue to adjust rates,” but he cautioned, “That’s not supportive of the countries in crisis.” Schneider is expecting three more rate hikes during 2011.

Click here to read the story on eurozone inflation from The Wall Street Journal.