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Euro zone inflation climbs above 2%

Euro zone - Price rises above ECB target
Euro zone - Price rises above ECB target

An initial estimate shows that the annual rate of inflation in the euro zone accelerated to 2.2% in December, the first time for two years that the rate has risen above 2%.

The EU's statistics agency Eurostat said the annual rate rose from 1.9% in November and October. The European Central Bank has set 2% as its inflation target.

December's figure was the first rise above 2% since November 2008 and the highest inflation figure since October 2008 when prices rose 3.2% over a year. Inflation that year subsequently fell to 2.1% and has remained under the 2% ceiling since.

In 2010, year-on-year inflation has been rising slowly but surely - at 1.7% in July, 1.6% in August, 1.8% in September and 1.9% in both October and November.

Eurostat's official inflation figure for December will be released on January 14.