The euro zone’s annual consumer inflation rate (CPI) hit a historic high of 5% in December, accelerating slightly from the 4.9% rise seen in November, according to preliminary data released today by the European Union statistical agency, Eurostat. Last month’s result surprised analysts consulted by The Wall Street Journal, which predicted a reduction of the rate to 4.7%.
The record CPI, which is equal to the rate of July 1991, increases pressure for the European Central Bank (ECB) to tighten its monetary policy. The ECB’s inflation target is 2%.
The CPI core, which excludes energy and food prices, increased 2.6% year-on-year in December, slightly higher than the 2.5% increase projected by the market. With information from Dow Jones Newswires.
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