The euro climbed a fresh all-time high against the pound, just short of the 80 pence level, after figures showed inflation in the 15-nation single currency zone rose to a record high in March. The euro zone harmonised index of consumer prices rose a provisional 3.5 percent year-on-year in March compared with a year-on-year rise of 3.3 percent in February, EU statistics office Eurostat said. The European Central Bank's target is for annual inflation to be at 2 percent and figures such as these are likely to further undermine the chances it will cut interest rates in the coming months as it battles to bring inflation under control. "The latest inflation data continue to challenge the ECB in adjusting rates in order to support growth in the short term," said Manuel Oliveri, currency strategist at UBS. The pound has also been undermined by mounting expectations that the Bank of England will cut interest rates next week. A series of bad news for the United Kingdom economy out this morning has added to the bearish sentiment surrounding the pound at the end of last week and sent the euro to a fresh all-time record high of 0.7972 pounds.