EXPLAINER: What does record inflation mean for the eurozone?

By KELVIN CHAN
AP Business Writer

LONDON (AP) — Inflation in the 19 countries that use the euro currency hit its highest level on record, led by surging food and energy costs. The European Union’s statistics office said Friday that consumer prices in the eurozone rose 5% in December compared with the previous year. That’s the highest level since recordkeeping began in 1997, breaking the record of 4.9% set just in November. It means everything from food to fuel is costing more as the economy rebounds from the coronavirus pandemic and adds pressure on the European Central Bank to act on inflation since it’s kept interest rates ultra-low.