London, Friday, 7 January 2022
According to preliminary estimates, annual inflation in the Euro Area rose for the sixth consecutive month in December 2021, reaching a new high of 5% from 4.9 percent in November.
The figures are in line with market expectations of 4.7 percent. Energy will have the highest annual rate (26 percent, up from 27.5 percent in November), followed by food, alcohol, and tobacco (3.2 percent vs. 2.2 percent), non-energy industrial products (2.9 percent vs. 2.4 percent), and services (2.9 percent vs. 2.4 percent) (2.4 percent vs 2.7 percent).
Inflation has remained over the ECB's target of 2% for the sixth consecutive month, as supply chain disruptions and high energy costs continue to weigh, despite policymakers' assurances that the current increase is just temporary. The core index, which excludes energy, food, alcohol, and tobacco, rose 2.6 percent year over year in November, the same as in November.
Inflation rose to 2.8 percent when energy was excluded.
(Edited by: The Decision Maker)