Eurozone inflation rises to record high
Inflation in the eurozone accelerated to the highest level on record in November, preliminary data by Eurostat showed on Tuesday, prompting further questions about what the European Central Bank’s next move will be with respect to its monetary policy. Annual inflation advanced to 4.9 per cent in November from 4.1 per cent in October. The rate was above economists’ forecast of 4.5 per cent. Likewise, core inflation, that excludes volatile items like energy, food, alcohol and tobacco, increased to a record 2.6 per cent from two per cent in October. Core inflation was forecast to advance to 2.3 per cent. High gas prices and the cost of imported goods were blamed for the spike in inflation. Energy prices, including oil and gas, jumped by 27 per cent from November 2020, Eurostat said. Meanwhile, in the US, the Federal Reserve’s Beige Book reported that economic activity grew at a modest to moderate pace in most Federal Reserve districts during October and early November. “Prices rose at a moderate to robust pace, with price hikes widespread across sectors of the economy,” the survey found. Input costs increases were “wide-ranging” due to strong demand for raw materials, logistical...