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 Australian Herald.

More Information

16 ℃

Fair in Sydney

International

Section

US, India to hold military exercise near disputed Chinese border

WASHINGTON D.C.: The U.S. will participate in a joint military exercise in mid-October with India, less than 62 miles from ...

South Korea sends orbiter to moon, seeks to join exclusive club

SEOUL, South Korea: South Korea has launched a domestically manufactured lunar orbiter that took off from Florida's Cape Canaveral Space ...

Russian missile scientist charged with passing secrets to China

MOSCOW, Russia: A leading Russian scientist in the field of hypersonic flight, Dr. Alexander Shiplyuk, has been arrested on suspicion ...

Citing safety of children, LA to move homeless away from schools

LOS ANGELES, California: During a meeting that was disrupted by protesters this week, the Los Angeles City Council voted to ...

Former Puerto Rico governor Wanda Vazquez arrested on bribery charges

WASHINGTON D.C.: The U.S. Justice Department announced this week that former Puerto Rico governor Wanda Vazquez has been arrested in ...

Canada sends 225 soldiers to help train Ukrainian forces

OTTAWA, Ontario: Military trainers from Canada will head to the United Kingdom to teach Ukrainians new techniques for fighting the ...

Sydney

Section