The Eurozone records record inflation rate of 5% in December 2021

The European Statistics Office (Eurostat) announced today, Friday, that the euro zone recorded an annual inflation rate of 5% last December.

Eurostat explained that this is the highest annual inflation rate for the 19-nation eurozone, since 1997.

The increasing price hike affects the economic recovery of the European bloc from the repercussions of the Coronavirus pandemic.

Eurostat notes that energy prices, which rose by about 26% in December 2021, compared to the same period in 2020, are a source of concern for European Union countries.

The wholesale prices of natural gas witnessed an increase over the past months, in addition to the noticeable rise in the price of electricity, which had an impact on consumers in many countries.

The euro area recorded an annual inflation rate of 4.9% during the month of November 2021.

Energy prices alone increased by 27.5% in November 2021 compared to the same period in 2020.

The inflation rate is measured based on the prices of food, alcohol, tobacco, energy and non-energy industrial products.

The European Commission announced last November that it expected strong growth this year, a 4.3% increase in the European Union’s gross domestic product, but warned that high inflation carried downside risks.

The European Central Bank targets an annual inflation rate of 2%, which is seen as contributing to the right balance between growth and stability.

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