Home / Politics / Policy /  Eurozone inflation rises at fastest pace in 30 years

The annual rate of inflation in the eurozone accelerated in November at the fastest pace since July 1991.

Consumer prices rose 4.9% on year in November, according to a first estimate released Tuesday by Eurostat, the European Union’s statistics agency. Prices rose 4.1% on year in October.

The main driver of the on-year increase was energy prices which rose 27.4% on year, compared with the 23.7% increase registered in October.

Consumer prices rose 0.5% in November over the previous month, data from Eurostat showed.

The core consumer price index--which excludes the more volatile categories of food and energy--rose 2.6% on year in November after rising 2.0% the previous month.

The acceleration in the eurozone’s annual rate of inflation adds further evidence to a buildup in price pressures globally as economies recover from the Covid-19 pandemic, amid strong consumer demand and global supply-chain disruptions.

Economists expect headline inflation to continue rising in the coming months, but to fall back below the European Central Bank’s 2% target in 2022 and 2023.

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