07/01/2022 (Agence Europe) – Driven by the steep rise in energy prices, the annual inflation rate in the euro area is expected to be 5%—its highest level ever recorded—in December 2021, according to an estimate published by Eurostat, the statistical office of the European Union, on Friday, 7 January. In November, inflation in the euro area had already beaten a record, reaching high of 4.9%. Looking at the main components of inflation, Eurostat believes that the annual rate for energy is expected to be 26% in December 2021 (compared with 27.5% in November). This is followed by food, alcohol, and tobacco (3.2%, compared with 2.2%); non-energy industrial goods (2.9%, compared with 2.4%); and services (2.4%, compared with 2.7%). While the current level of inflation in the euro area is well above the European Central Bank’s (ECB) target of 2% inflation, the monetary institution believes that this increase is temporary. See Eurostat data: https://bit.ly/33aLzUf (DG)