Eurozone inflation rises to 2.2%

Fuels for transport and heating oil pushed up eurozone inflation to 2.2% over the year in December. In November, the inflation rate was 1.9%.

Telecommunications and garments, on the other hand, had the biggest downward impacts.

On average, inflation within all EU member states rose from 2.3% to 2.6% over the same time period.

Cyprus, Germany, the Netherlands and Slovakia reported the lowest inflation rates, while Estonia, Greece and Romania reported the highest.

Jean-Claude Trichet, the president of the European Central Bank, recently highlighted the importance of keeping the inflation rate below its target of 2%. (article continues below)

Speaking before the Christian Democratic Union in Germany earlier this month, he echoed Franz-Josef Strauss, a former leader of the Christian Social Union. Back in 1978 Strauss warned that, in connection with the establishment of a European Monetary System, Europe must not become an “inflation community” [Inflationsgemeinschaft].

“Europe has not become such an inflation community,” Trichet stressed. “And it will not become one.”