Preliminary data on Tuesday showed that the euro area’s inflation rate rose to an all-time high of 1.9 percent in November. This prompts further inquiries about how and why. European Central BankIt will continue to implement its monetary policy.

The month’s headline inflation was 4.9%, which is lower than the previous year. The figure was significantly higher than that of October’s 4.1% and exceeded the consensus forecast from Reuters. This was the highest recorded figure in 25 years of data collection.

These data come at a time policymakers wait for additional data about a new product. Covid-19Variant, the omicron, was discovered for the first-time in Southern Africa last week.

Travel restrictions imposed in response to the new version raise concerns over the potential impact on economies. Although experts argue societies are more equipped now to combat the virus than the original Covid lockdowns did, market participants have been concerned about the possibility of additional restrictions.

However, the Euro zone saw consumer prices rise again due to higher energy costs as well as supply chain problems.

In Germany — a country historically scared of high inflation — the inflation rate hit a 29-year highIn November. These prices were up 6% compared to a year earlier, according to the Harmonized Index of Consumer Prices.

In all cases, the trend remains constant FranceInflation rate at 3.4% was recorded in November. It is the highest reading since 2008.

What will the ECB do to reconcile the high inflation numbers with the uncertainty surrounding the pandemic?

Luis de Guindos, Vice President of the ECB, stated last week that it still intends to terminate its emergency bond purchase program in March. The market participants want to find out how the central banks will adjust its tools.