The euro zone’s inflation rate hit another record high in December, coming in at 5% according to preliminary data released Friday.

Following consecutively increasing inflation in the last few months, attention has turned to inflation. Money managers have been debating the validity of the increase. European Central BankShould be more assertive in attempting to stem rising prices

Last month, the central bank stated that it will be reducing its monthly asset purchases but promised to keep its promise. unprecedented level of stimulus in 2022.

The ECB stated at that time, “Monetary accommodations are still required for inflation stabilization at the 2% inflation goal over the medium-term.”

These forecasts were updated December 2012 headline inflationBoth 2023/2024 will see the rate rise to 1.8% However, it expects that the rate will exceed the bank’s target for 2022 at 3.2%.

Economists believe that inflation and the threat of a pandemic are the most significant risks to the economy in 2022.

Analysts at Berenberg stated Friday that if inflation continued to rise and there were persistent upside surprises central banks could be required to tighten their brakes.

The ECB might prepare for a spring 2023 first rise, they said.