The European Statistics Agency released data on November 30, showing that the eurozone’s inflation rate rose to a record high this November due to a sharp increase in energy prices.
|100 euro denomination coin in Rome, Italy. Photo: AFP/VNA|
According to Eurostat, the consumer price index (CPI) in November, a measure of inflation, increased to 4.9% from 4.1% recorded in the previous month.
This is the highest increase since the statistical agency began collecting data in more than 20 years. CPI in November is also 2 times higher than the 2% target set by the European Central Bank (ECB).
Earlier this month, ECB board member, German economist Isabel Schnabel, predicted that inflation would rise to the highest level this November since the ECB issued the euro in 1999. Besides that. , Ms. Isabel believes that the upward momentum will likely slow down next year.
However, in the short term, rising inflation is putting pressure on the ECB and the US Federal Reserve Bank (Fed) to limit the implementation of large-scale economic stimulus programs, with markets concerned that policymakers may soon cut interest rates to keep prices from climbing.