FAST FIVE: Red-Hot European Inflation Hits A New Record, Rising By Double Digits For The First Time

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Core HICP inflation, excluding energy, food, alcohol and tobacco, rose 49bp to 4.79%yoy, also above expectations.

Of the non-core components, energy inflation rose 2.2pp to 40.8%yoy, while food, alcohol and tobacco inflation rose 1.2pp to 11.8%yoy.

In Italy, headline inflation surprised to the upside at 9.5%yoy, and the press release notes strength in non-durable and semi-durable goods, and food prices as the primary drivers of the increase.

Officials on Monday raised their projection for euro-zone inflation next year by 1.6 percentage points to 6.2%, noticeably exceeding the ECB's own outlook.

“We expect to raise interest rates further over the next several meetings to dampen demand and guard against the risk of a persistent upward shift in inflation expectations.” A relatively tight labor market may intensify such pressures.

Categories: ZH