FRANKFURT, (Reuters) – The Euro zone’s inflation rose to a record-breaking level as predicted this month. This is a worrying sign for policymakers at the European Central Bank, who are already concerned that price increases could be too rapid and cause wage stagnation.

According to Eurostat data, inflation in 19 countries rose to 7.5% from 7.4% in March. This was in line with predictions.

Volatilities in energy prices were the largest contributor. However, energy inflation rate actually fell compared to March, while food, non-energy goods and services saw further price increases. This suggests that inflation is broadening.

The ECB is concerned that the ECB has lost its decade-long battle with low prices.

The ECB is closely monitoring inflation that excludes fuel and food prices. Meanwhile, a narrower measure which includes alcohol and tobacco products soared to 3.5% from 2.9%. Both numbers were far above what was expected.

The ECB has been struggling to limit price growth and is likely to reduce economic support when policymakers meet in June 9th, even though war weights on confidence this quarter and threatens to push growth into negative territory.

The government will end all bond purchases in July. It then may consider raising rates in the third quarter. A second rate increase is expected to be before the end of the year.

It is a concern of policymakers that long-term inflation expectations have risen well beyond their 2% target. This suggests a waning faith in the ECB’s ability control prices and eventually fulfill its mandate.

The key indicator of inflation outlook for the long term rose to 2.5% Friday, but some surveys based indicators now show readings higher than 2%.

Markets currently price in rates hikes of between 90 and 4 basis points for this year. If the ECB’s minus-0.5% deposit rate is reintroduced to positive territory, it would be the first time that the rate has been since 2014.