On Tuesday, data from Eurostat had unmasked that the key inflation indicator in eurozone, consumer price index (CPI), had accelerated by the steepest pace on record last month, as a fatigued supply chain alongside a stabbing shortage in raw materials had comfortably continued to hike prices of basic goods like of food and medicine. More importantly, data from Eurostat also had unveiled that the eurozone CPI might have peaked last month and would more likely to follow a marginal slide before gathering momentum next year, which in effect would keep turbocharging the wheel of inflation in the region. On top of that, more than a quarter of increase in inflation indicators in eurozone last month, had been led by an upsurge in energy prices, as natgas futures’ prices in eurozone soared to nearly six-fold of those in the United States.
As of last Friday, US natgas futures’ prices were hovering at about $5.44 per mmBtu (million British Thermal Unit), while eurozone natgas prices stood at $30 per mmBtu.
Eurozone Consumer Price Index hits record
According to data from Eurostat, Consumer Price Index, the key inflation indicator for ECB (European Central Bank), accelerated by 4.9 per cent over past twelve months through November, marking off the highest level in two and half a decade, beating an analysts’ expectation of 4.5 per cent.
Eurozone inflation was chartering at 4.1 per cent in October. Nonetheless, although, combined inflation in eurozone’s 19-member countries sharing the common currency euro, had surged to nearly a 2-1/2-fold of an ECB target of 2.0 per cent, the European Central Bank would unlikely to foster major policy changes, suggested analysts followed by the data.