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The annual inflation rate in the euro area increased one tenth in December compared to the previous month, standing at 5 percent, according to a preliminary estimate published this Friday (07.01.2022) by the community statistical office, Eurostat. The entity considers that the rise in energy prices drove this trend.
Eurostat had not registered such a high figure since it began compiling its statistics in 1997. The figures confirm the increase in prices in recent months, since the indicator had stood at 4.1 percent in October and in 4.9 percent in November, which was the record until the data for the final month of last year was released.
These figures are well above the objective of the European Central Bank (ECB), which was betting on an inflation of 2 percent per year in the 19 countries of the euro zone. Despite this, for the monetary institution this inflation is a temporary phenomenon that will tend to decrease in 2023, after reaching a peak that should be reached in the course of 2022.
Because of the energy
The rise in gas and energy prices explains why inflation has soared. In December, the rise in energy prices reached 26 percent, well ahead of other goods and services, indicates Eurostat. The prices of food, alcohol and tobacco also increased by 3.2 percent, ahead of those of industrial goods (2.9 percent) and services (2.4 percent).
Among the major euro zone countries, Spain (6.7 percent) and Germany (5.7 percent) posted higher inflation than the European average during December. In Italy (4.2 percent) and in France (3.4 percent) it was lower. In contrast, the rate was especially high in the Baltic countries: in Estonia it reached 12 percent, while in Lithuania it reached 10.7 percent, three points more than in Latvia. The countries with the most moderate price increases were Malta (2.6 percent) and Finland (3.2 percent).
DZC (EFE, AFP)