Annual inflation in the eurozone remained at 3.1 percent in December last year, well above the two-percent ceiling preferred by the European Central Bank (ECB), the European Union (EU)'s statistics bureau Eurostat estimated on Friday.
The figure, unchanged from the previous month, was the highest in more than six years and covers the 13 EU countries sharing the same currency in the last month of 2007.
Cyprus and Malta joined the eurozone at the beginning of this year, bringing the number of eurozone members to 15.
Inflation in the eurozone had been rising in previous months, due to a hike in oil and food prices. Inflation was 2.6 percent in October and 2.1 percent in September. It last hit 3.1 percent in May 2001, months before the euro came into circulation.
The Frankfurt-based ECB aims to keep eurozone annual inflation under two percent in order to maintain price stability.
Despite higher inflation, analysts said the ECB was unlikely to raise its benchmark interest rate in the foreseeable future.
In order to take care of the economy, which is already facing increasing risks of a downturn due to recent financial turbulence, the Frankfurt-based central bank has brought its interest-rate hike to a halt since June, before which it had raised interest rates eight times in one and a half years to contain inflation.
Source: Xinhua
|
Comment
Tell A Friend
Print Format
Save Article