Inflation in the euro zone soared to 5% in December, its highest in 24 years

The CPI of the euro zone has risen to 5% in December, according to the European Statistical Office (Eurostat). This is the highest figure in the entire historical series, which began in 1997.

Both analysts and central banks expected a similar figure: already in the previous month, the CPI had registered its highest level since the counting of the statistics office began, reaching 4.9%, eight tenths more than in October.

According to a report collected by the Cinco Días portal, behind this increase is the rising cost of electricity. In December 2021, electricity and hydrocarbon prices rose 26% year-on-year, a level well above other basic products, although it represents a decrease compared to November, when it stood at 27.5%.

Food has also positioned itself among the goods that most push up prices: it has registered a year-on-year rise of 4.6%; the previous month the rate was 1.9%, which makes it the sector with the most month-on-month advance.

Estonia (12%), Lithuania (10.7%) and Latvia (7.7%) have led the greatest increases in inflation, although Spain has followed closely, with growth of 6.7% in the annual rate.

When the impact of energy was excluded from the total calculation, the annual inflation rate in the euro zone rose to 2.8%, from 2.5% in the previous month. Even leaving out the effect of the prices of fresh food, alcohol and tobacco, the core inflation rate remained at 2.6%, repeating for the second consecutive month the highest reading in the entire historical series.

Even in Germany, used to few price movements, the jump has been monumental. Its average inflation rate in 2021 has stood at 3.1%, the highest level since 1993, the Federal Statistical Office (Destatis) reported on Thursday based on provisional data. Without considering energy prices, the average inflation rate would have been 2.1%.