The eurozone’s inflation rate jumped to a fresh record high in January, an unexpected rise for policymakers at the ECB who do expect to raise their key interest rate this year.
- The eurozone’s annual rate of consumer-price inflation closed 2021 at 5%, then the highest on record and more than twice the ECB’s target.
- Data released by the European Union’s statistics agency stated that the annual rate of inflation rose to 5.1% on a fresh increase in energy prices.
- Energy is anticipated to have the highest annual rate last with 28.6%, increasing from 25.9% a month ago.
- Food, alcohol, and tobacco with 3.6% inflation in January, services with 2.4%, and non-energy industrial goods with 2.3%.
As prices surge, Eurozone workers are facing a sharp decrease in their real spending power, as their bargaining power appears to be expanding.
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