The inflation rate in the euro area reached, in December, its highest level in twenty-five years, at 5% over one year, still propelled by soaring energy prices, according to a first estimate published on Friday January 7 by Eurostat.
In November, inflation in the euro zone had already broken a record, at 4.9%.
The surge in prices is largely explained by the exceptional increase in energy prices, which jumped 26%. A return below the 2% inflation target is only expected for 2023.
These figures are well above the European Central Bank’s (ECB) target of 2% inflation in the euro area. But, for the monetary institution, this inflation is transitory. The flight from prices in recent months can be explained above all by the exceptional increase in gas and electricity prices.
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