Energy Prices Push Eurozone Inflation Higher

A 2.3 percent jump in energy prices from November to December pushed inflation higher in the Eurozone while consumer prices rose 0.6 percent. European Central Bank president Jean-Claude Trichet warned that the eurozone inflation rate may rise further in the coming months, as a result of higher energy costs.

Mr Trichet said inflation could “temporarily increase further”, and is “likely to stay above 2% until falling back towards the end of the year,” he said. He also called on governments with high debt levels to introduce further measures to cut their budget deficits, particularly through spending cuts.

Source: BBC News

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