The inflation rate in the eurozone climbed to a peak in November, according to data published today (Tuesday). The data increase the pressure exerted on the European Central Bank to respond to the situation.
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Inflation in the 19 member states of the eurozone rose by 4.9% in November compared to the same period last year, while analysts’ forecasts had expected inflation to climb by 4.5%, after rising by 4.1% in October compared to October 2020. This figure is the highest since The documentation 25 years ago.
The data is being released while policymakers are awaiting more information about the new Corona strain, Omicron. The traffic restrictions imposed in several countries increase the fear of further damage to the economies and the market responds to these concerns.
Prices in the eurozone rose in November amid higher energy costs and supply chain problems. According to the data, energy prices rose by 27% compared to last year.
In Germany, it was reported yesterday that the inflation rate has risen to its highest level in 29 years, after prices rose by 6% in November compared to last year. A similar trend was also recorded in France, where inflation climbed 3.4% in November, the highest since 2008.
The main question now is how the European Central Bank (ECB) headed by President Christine Lagarde intends to deal with the high inflation given the uncertainty surrounding the plague, and that the inflation target they set was 2%.
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