Brussels-Sana
Inflation in the euro area rose to its highest level in 25 years last December, compared to the same month last year.
AFP reported that the level of inflation rose to 5 percent, which constitutes a significant violation of the European Central Bank's goal of stabilizing inflation in the euro area by 2 percent.
European sources attributed the noticeable rise in the level of inflation to the significant rise in gas and electricity prices, as the annual rise in energy prices in December amounted to 26 percent, according to the European statistical agency Eurostat.
Capital Economics said in a note today: “After inflation reached 5.5 percent in December, headline inflation in the euro area is supposed to decline this year with the decline in the energy component.”
The European Central Bank announced last month that it would reduce its monthly asset purchases, but pledged to continue the unprecedented level of stimulus in 2022.
