The euro zone’s inflation rate has surged to a record high in November, signaling uncertainty about what the ECB will do next with its monetary policy.
- The headline inflation stood at 4.9% for the month compared to the same period last year. The figure was above a consensus of 4.5% from Reuters and was higher than October’s figure of 4.1%.
- Higher energy prices led to the latest inflation figure. Eurostat indicated that energy is on track for its highest annual price increase in November at 27.4%, from 23.7% in October.
- Consumer prices rose again in the euro area attributable to higher energy costs and supply chain concerns.
- In Germany, the inflation rate rose to a 29-year high in November. The trend is similar in France in France with the inflation rate surging to 3.4% in November.
The key concern going forward is how ECB will manage the high inflation rates with uncertainty over the COVID-19.
Euro Stoxx 50 down -1.27%, EUR USD up +0.51%Source: Eurostat