Expensive oil and food boosted euro zone inflation in November even higher than initially estimated to its steepest level in six and a half years, the European Union's statistics office said today.
Eurostat said consumer prices in the 13 countries using the euro rose 0.5 per cent month-on-month for a year-on-year 3.1 per cent jump, up from 2.6 per cent in October and above the initial 3 per cent estimate that shaped market expectations.
It was the highest rate since May 2001, when inflation also reached 3.1 per cent - its strongest level since measurements for what is now the euro zone started in January 1997.
The European Central Bank wants to keep annual inflation just below 2 per cent, but it left interest rates unchanged last week because of concerns about the full impact of the global credit crunch on the euro zone economy.
Energy prices surged 3.4 per cent in November against October and were 9.7 per cent higher than a year before, while food, alcohol and tobacco prices rose 0.7 per cent on the month and 4 per cent in annual terms.
Without volatile unprocessed food and energy prices, or what the ECB calls core inflation, costs rose 0.2 per cent month-on-month for a 2.3 per cent annual gain.
In the euro zone's biggest economy, Germany, inflation was 3.3 per cent year-on-year. France and Italy saw price increases of 2.6 per cent each.