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Soaring food and energy prices have pushed inflation in the 15 European countries in the euro zone to a new high. The March figure is 3.6 per cent. That's the highest in nearly 16 years and higher than analysts expected. The news will be cheered by Europeans heading across the Atlantic to shop because it's boosted the euro to record highs against the dollar - a euro now worth $1.59. But for borrowers, the surge in prices badly dents the chances of the European Central Bank following the U.S. central bank in cutting interest rates. The dollar's lost 15 percent against the euro since September - the decline thanks to steps taken by the Fed to protect the U.S. economy weather the subprime mortgage meltdown. A gloomy profit picture from JPMorgan Chase after more than five billion dollars in writedowns linked in part to subprime loan losses. America's third-largest investment bank says quarterly profit fell 50 per cent - to $2.37 billion or 68 cents per share from 4.79 billion - $1.34 a share a year ago. European markets took the news in their stride - nerves had been frayed at the prospect of further fallout from the global credit crunch but JPMorgan's result was better than many expected. Shares prices kept their gains, the FTSE Eurofirst 300 trading higher. So too the main European indices. That weak dollar helped oil to a new record high above $114 a barrel. The price is more than three times the average seen in 2002, when oil's rally began. Iraqi oil could soon be on its way to European markets. The EU says it's mere weeks away from signing a preliminary energy pact with Iraq. It's all part of the bloc's efforts to reduce its heavy reliance on somewhat unpredictable Russian oil and gas. Susan Flory, Reuters COMPANIES MENTIONED: SYMBOLS: