BRUSSELS (Reuters – Euro zone producer price records rose in December as expected due to soaring fuel costs. Thursday’s data shows that the record levels of consumer inflation are likely to continue.

Eurostat, an office of the European Union statistics said December saw prices rise 2.9% month-on-30 in euro member countries. That’s a surge of 26.2% in year-on. Eurostat stated that this is the most recent annual measurement since January 1996 when measurements began.

Reuters polled economists and they expected a 2.8% increase in monthly earnings, as well as a leap of 26.1% over the year.

Decline readings are mainly affected by the rising energy prices, which rose 7.0% month on month and a staggering 73.4% annually.

Producer prices did not rise by 0.5% month-on-month and 10% annually without the volatile energy component.

Producer prices are usually translated into higher consumer prices, although this can be delayed as the manufacturers transfer their increasing costs to consumers.

The Euro zone’s consumer inflation rose by 5.1% to January. However, the European Central Bank is keen to maintain it at 2% in the medium term.