Eurozone inflation hits record 5.1% in Jan, boosting rate hike bets

Euro-area inflation unexpectedly accelerated to a record, overshooting expectations by the most in at least two decades and fueling bets the European Central Bank could raise interest rates earlier than expected.

Consumer prices jumped 5.1% from a year ago in January, up from 5% in December. The median estimate in a Bloomberg poll of 44 economists saw a reading of only 4.4% and none predicted inflation gaining pace.

Money markets now see the ECB lifting rates by 10 basis points by July, rather than by September. The euro extended its advance, climbing 0.4% against the dollar to $1.1315.

While slowing in