For the first time in two months, inflation in the Eurozone was less than 10%.

Eurozone inflation returns to single figures. Source: Pixabay.com

The preliminary consumer price index in the single euro area increased by 9.2% year-on-year in December. This figure in November was 10.1%. In October, the index was a record, its value was equal to 10.6%.

Experts predicted inflation in the Eurozone in December at the level 9.5%.

Core inflation rose to a new high of 5.2%. This result is a confirmation of the politicians’ fear that a decrease in the cost of energy carriers would entail a drop in the overall indicator

According to the results of November, core inflation was equal to 5%. Economists expected that there would be no further growth, but their forecasts didn’t come true.

Philippe Roche, the founder of the consulting company Heteronomic, is confident that an effective fight against inflation is impossible without eliminating its root cause. He believes that no other measures will help.

Francois Villeroy de Galau, governor of the French central Bank, said that the European Central Bank should continue to take measures to raise interest rates. He is convinced that this method will help to cope with the problem of basic price pressure.

The governor of the central bank of France also suggested that the course of tightening monetary policy in Europe will be completed by the summer. At the same time, he didn’t specify how much more the interest rate should be increased. Now, this indicator is 2%.

Representatives of financial markets are confident that the maximum interest rate in the Eurozone will be 3.5%.

The European Central Bank hasn’t yet announced its monetary policy plans. Earlier it was reported that last summer the ECB raised the rate for the first time in 11 years. This was done in order to take control of the inflationary process.