Eurozone inflation hits 5%, marks record high amid energy price surge



by   |  VIEW 845

Eurozone inflation hits 5%, marks record high amid energy price surge

On Friday, data from Eurostat had unveiled that Consumer Prices Index (CPI), the core inflation indicator for ECB (European Central Bank), in 19 eurozone member states sharing the common currency euro, had spiked in December on a year-on-year basis, mostly driven by a meteoric upsurge in energy prices while mounting pressures on ECB to foster a less dovish approach which had persistently undermined a robust build-up in price pressures.

On top of that, eurozone consumers’ expenses for energies had scaled more than 26 per cent higher over past twelve months through December on a year-on-year basis, while prices of basic items such as such goods, services alongside imported goods among others had surged over ECB’s target range of 2.0 per cent, data from Eurostat had unfurled.

Apart from the soaring pandemic cases which had prompted some major eurozone economies to reimpose pandemic restrictions, a lingering supply chain constraint had curbed out the availability of most consumer items, while households seemingly had been forced to spend more for everything ranging from top-tier items like of new cars to basic goods such as foods and medicines.

Eurozone inflation hits 5 per cent in December

According to Eurostat data, inflation in the bloc’s 19 countries sharing the common currency euro, edged up to 5.0 per cent from a reading of 4.9 per cent in November, marking off an all-time high and well-above an analysts’ estimate of 4.7 per cent.

Nonetheless, eurozone inflation excluding food and energy, climbed to 2.7 per cent in December compared to a 2.6 per cent a month earlier.