EUROZONE inflation surged to its highest rate on record in November, the European Union’s statistics office Eurostat confirmed Friday, with more than half of the increase due to a spike in energy prices.

Eurostat said inflation in the 19 countries sharing the euro rose to 4.9 percent, a year-on-year surge in line with an earlier Eurostat estimate. Month on month, the increase was revised down to 0.4 percent from a previously reported 0.5 percent.

The European Central Bank (ECB) wants to keep inflation at 2 percent over the medium term and has repeatedly said the inflation surge is temporary. The bank expects price growth to slow during 2022, but admitted this will take longer than initially expected.

Breaking down the year-on-year total, more expensive energy added 2.57 percentage points to inflation, services 1.16 points, non-energy industrial goods 0.64 points and food, alcohol and tobacco a further 0.49 points, Eurostat said.

Without the volatile energy and unprocessed food prices, a measure the ECB calls core inflation, prices rose 0.1 percent on the month for a 2.6 percent year-on-year gain.

An even narrower measure, looked at by many economists, that also excludes alcohol and tobacco showed prices unchanged in the month and also up 2.6 percent from a year earlier.

The ECB may be underestimating inflation risks, a diverse group of policymakers said Friday, just hours after the bank extended stimulus measures to keep boosting price pressures.

Inflation has exceeded even the most pessimistic forecasts in recent months and the ECB nearly doubled its 2022 projection, but continued to argue that longer-term price pressures are insufficient and price growth could dip back below its 2 percent target further out.

(SD-Agencies)