Euro zone inflation hit another record high in January

2022-06-08 0 By

Brussels, Feb. 2 (Xinhua) — Inflation in the euro zone continued to climb in January 2022 to an annual rate of 5.1 percent, higher than market expectations and hitting a new record high, driven by surging energy prices, according to preliminary data released by eurostat on Tuesday.Data showed energy prices in the eurozone rose 28.6 per cent in January from a year earlier, driving up inflation in the month.Food, alcohol and tobacco prices rose 3.6 per cent year on year;Prices of non-energy industrial goods rose 2.3 per cent year-on-year.Core inflation, which excludes energy, food and alcohol and tobacco prices, was 2.3 per cent that month.On a country-by-country basis, inflation in Major European economies Germany was at 5.1 percent in January, France at 3.3 percent, Italy at 5.3 percent and Spain at 6.1 percent.The European Central Bank has recently sharply raised its medium-term inflation forecast to 3.2% in 2022.Analysts say the recent surge in energy prices has led to rising inflation.The easing of coronavirus containment measures in Europe and the gradual recovery of economic activity have further boosted oil prices.In addition, low winter stocks and worries about Ukraine have contributed to a surge in European gas prices.The current high level of inflation in the euro zone has increased concerns about the European Central Bank’s monetary policy meeting on Wednesday.European Central Bank President Christine Lagarde said that so far, inflationary pressure in Europe is not out of control, and market demand and employment participation have only just returned to pre-epidemic levels.She said that appropriate monetary and fiscal policies are important measures to deal with the impact of the epidemic.