The annual inflation in the Eurozone in March hit a historic record high of 7.5%, far beyond expectations for 6.6%, up from 5.9% in February, according to Eurostat, the statistical office of the European Union (EU).

With the energy crisis and geopolitical conflict in the region still unsolved, inflation in the EU is set to go even higher in the coming months. Inflation is yet to peak, according to Reuters' estimate.

Skyrocketing energy prices were the main culprits for inflation. Looking at the main components of euro area inflation, energy has the highest annual rate of 44.7% in March, compared to 32% in February.

However, energy is not the only problem. All items except energy, which include essentials like food, non-energy industrial goods, alcohol, tobacco, and services, picked up to 3.4% from last month's 3.1%, above European Central Bank's 2% target.