Eurozone Inflation Surges to 1.1% in December

تم نشره في Wed 4 January / Jan 2017. 01:00 AM
  • Euro Currency Symbol in a square in a Euopean city

CAPITALS — Eurozone inflation has surged to its highest rate in more than three years, driven by increased prices for energy, food, alcohol and tobacco.

The annual inflation rate hit 1.1 per cent last month, according to official statistics agency Eurostat, a sharp jump from November's rate of 0.6 per cent.

The rate is the highest since September 2013, when inflation was also 1.1 per cent.

The higher-than-expected increase brings inflation closer to the European Central Bank's target of just below 2 per cent.

ECB chief Mario Draghi has said he expects inflation to reach the target by 2018 or 2019.

Last month's increase was driven mainly by a jump in energy prices, which rose by 2.5 per cent year-on-year in December, their first increase in over a year. Energy prices were boosted by oil cartel OPEC's decision to cut output.

Food, alcohol and tobacco prices rose 1.2 per cent year-on-year, while services were also 1.2 per cent more expensive than a year ago.