Euro inflation hits new record high of 5 percent in December

Robert Besser
10 Jan 2022, 23 GMT+10

In December, the inflation rate in the Eurozone reached a new record high, which raised further questions about the policies of the European Central Bank
Preliminary data release on January 7 showed inflation for December reached five percent, compared to the same month last year, the highest ever on record
With questions being raised as to whether the European Central Bank should be more proactive in combating rising prices, inflation has been in the spotlight after consecutive increases in recent months

BRUSSELS, Belgium: In December, the inflation rate in the Eurozone reached a new record high, which raised further questions about the policies of the European Central Bank.

Preliminary data release on January 7 showed inflation for December reached five percent, compared to the same month last year, the highest ever on record and follows November's record high of 4.9 percent, mainly caused by higher energy prices.

With questions being raised as to whether the European Central Bank should be more proactive in combating rising prices, inflation has been in the spotlight after consecutive increases in recent months.

Last month, the European Central Bank said it would cut its monthly asset purchases, but it stressed that it will continue providing stimuli in 2022.

"Monetary accommodation is still needed for inflation to stabilize at the 2 percent inflation target over the medium term," the ECB said.

Its forecasts, updated in December, placed inflation at 1.8 percent in both 2023 and 2024, but it expects the rate to exceed its 2022 target at 3.2 percent.

The pandemic and inflation are among the most serious economic risks in 2022, economists argue.

Meanwhile, analysts at Berenberg said if inflation continues to rise, central banks could be forced to urgently step in, adding that the European Central Bank could prepare the ground for a first hike in the spring of 2023.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Orlando Echo.

More Information

76 ℉

Partly Cloudy in Orlando/Executive

International

Section

Uzbek capital Tashkent hit by blast, one dead, 162 injured

TASHKENT, Uzbekistan: Uzbek authorities said a powerful explosion on September 28 at a warehouse near Tashkent's airport killed one person ...

Unidentified winner claims Florida's $1.6 billion lottery

TALLAHASSEE, Florida: The Florida Lottery said this week that the second-largest lottery winner in U.S. history has come forward to ...

Survey retains New York as world's top financial center, London second

LONDON, UK: This week, the Global Financial Centers index showed that New York remains the world's leading financial center, with ...

Taiwan develops first domestically-made submarine

KAOHSIUNG, Taiwan: In a significant milestone for its defense capabilities, Taiwan has unveiled its first domestically developed submarine. Although it ...

To avoid 'lecture', Solomon Islands PM says he did not meet with Biden

HONIARA, Solomon Islands: Prime Minister Manasseh Sogavare revealed that he opted out of a Pacific Islands leaders' summit at the ...

First US state tax on firearms, ammunition adopted by California

SACRAMENTO, California: Intending to raise some US$160 million per year to help prevent gun violence, California Governor Gavin Newsom signed ...

Florida

Section