Annual inflation in the eurozone in December reached a 30-year record

According to the European statistical Agency Eurostat, annual inflation in 19 eurozone countries in December, according to preliminary estimates, accelerated to 5% (from 4.9% a month earlier), updating the record since August 1991. Analysts predicted a slowdown in inflation to 4.7%. A year earlier, deflation of 0.3% was recorded in the eurozone.

At the same time, core annual inflation accelerated to 2.7% from 2.6% a month earlier. Analysts expected the indicator to remain at 2.6%.

The euro reacted to this news by strengthening to the level of 1.1320. Subsequently, the single currency declined slightly to 1.1298. Additional support for the euro quotes was provided by statistics on retail sales in the eurozone, the volume of which increased by 1% compared to October, although analysts expected a decrease of 0.5%.

Experts note that the euro could weaken if inflation in the eurozone slowed down earlier than in the United States. In this case, the European Central Bank could lag behind its counterparts in the face of the US Federal Reserve and the Bank of England in raising interest rates.