Thursday, August 21, 2025

Euro Inflation Soars Past Record as ECB Struggles to Maintain Transitory Narrative

Inflation across the euro area surpassed previous record levels in December, eroding at consumer sentiment and further dismantling the ECB’s transitory narrative.

According to latest data from Eurostat, consumer prices rose a staggering 5% from one year ago in December, surpassing the previous month’s annual increase of 4.9% and above the 4.8% forecast by economists polled by Bloomberg. Core inflation, which does not account for volatile components such as food and energy, stood at 2.6%— in line with November’s figures.

The latest data from Eurostat creates added pressure on the European Central Bank, which up until now has insisted that the current bout of elevated prices are merely temporary and will subside to the 2% target rate in the near term. However, ongoing supply chain disruptions, coupled with surging energy costs have only caused inflation to accelerate by the fastest pace since the bloc’s currency was first created.

In the meantime, the emergence of the Omicron variant has caused consumer confidence to wane, particularly across Europe’s retail and services sectors. Some analysts, however, forecast that the peak for inflation has been reached, and that consumer prices will begin to stabilize. “Despite a bumpy road ahead, the big picture is for inflation to end over the coming months the positive trend started last year,” said Oxford Economics chief Italian economist Nicola Nobile.

But, the region’s ongoing headache with soaring energy costs continues to worsen. Natural gas prices rose again last week after Russia slashed European deliveries in an effort to put pressure on consumers and energy-intensive industries to reduce their gas consumption.


Information for this briefing was found via Eurostat and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

A Medical Breakthrough the Market Overlooked | David Elsley – Cardiol Therapeutics

Why Grade Beats Size in Silver Mining | Frank Basa – Nord Precious Metals

Are Investors Missing the Start of the Next Commodity Supercycle? | Morgan Lekstrom – NexMetals

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

Natural Gas Prices Hit New Record as Europe Struggles with Energy Independence From Russia

Energy costs are skyrocketing out of control amid the ongoing Russia-Ukraine conflict, as the price...

Tuesday, March 8, 2022, 10:31:00 AM

America’s Not-So-Transitory Inflation Skyrockets Past Expectations… Again

Another month gone, another doozy CPI print. American consumers continued to be hammered in the...

Thursday, October 14, 2021, 10:18:00 AM

Deutsche Bank Warns of Major Recession if Germany Halts Russian Oil and Gas Imports

Germany is slated for a steep recession if it doesn’t reverse course on halting energy...

Tuesday, April 5, 2022, 04:21:00 PM

New UK PM Rishi Sunak Looks To Settle Outstanding Issues Over Northern Island And The EU

Britain’s newly installed Prime Minister Rishi Sunak spoke with US President Joe Biden on the...

Thursday, October 27, 2022, 12:04:00 PM

Japan Concedes Authorities Likely Don’t Have the Tools to Combat Rapidly Falling Yen

The yen is falling sharply, further widening the country’s trade gap to a record, and...

Thursday, September 15, 2022, 06:04:07 PM