Eurozone inflation rises to record 5%
Inflation in the eurozone climbed to an annual rate of 5 percent in December, the second consecutive record, according to the initial estimate of the European Union’s statistics office.
The rate was slightly higher than the previous month’s increase of 4.9 percent. Inflation has jumped around the world as the pandemic disrupted supply chains, labor markets and the availability of goods. In Europe especially, soaring energy prices have contributed significantly to the record-high inflation rates.
But analysts say there are small signs inflation is turning a corner. In December, energy prices rose 26 percent compared with a year earlier, 1.5 percentage points smaller than November’s increase.
Still, energy prices are set to remain volatile this winter amid dwindling stockpiles of natural gas and concerns about supply from Russia. Around the New Year, European gas prices fell sharply but then jumped 30 percent Tuesday. They remain several times higher than normal prices.
The European Central Bank expects energy prices to stabilize throughout the year and supply bottlenecks to ease, allowing inflation to eventually fall back. European policymakers have argued that because most of the jump in inflation will be temporary, they do not need to respond aggressively by raising interest rates or ending all of the bank’s bond-buying programs.
But Europeans will still have to withstand a relatively long period of higher prices. Once energy prices are stripped out, December’s inflation rate rose 2.8 percent from a year earlier, as the prices of food and industrial goods increased. The central bank forecasts the overall inflation rate, including energy, to average 3.2 percent this year, notably above its 2 percent target.
According to some analysts, the eurozone may have reached the peak in inflation.
“In the near term, eurozone inflation is set to decline,” Salomon Fiedler, an economist at Berenberg bank, wrote in a note to clients. For one, the effects of changes to German sales taxes at the start of the pandemic will no longer affect inflation, reducing the overall rate by about half a percentage point.
There are “tentative signs” that some of the key drivers of the recent increase in inflation are reversing, Claus Vistesen, an economist at Pantheon Macroeconomics, wrote in a note.
“If we are right, markets, and the ECB, will breathe a sigh of relief, but we think it will be short-lived,” he wrote. “Energy inflation will come down only slowly, and with food inflation now seemingly on the rise, the headline will remain high overall through most of this year.”
Allen was born on October 31, 1936 in Wakefield, Virginia. The son of Davey and Bertha Crocker, Allen grew up in New York City, NY. At the age of 18, Allen enlisted in the Army. He valued his service highly and attained the rank of Master Sergeant (E8). As part of his service, he received several decorations, medals, and badges. Among them are the Legion of Merit, Armed Forces Expeditionary Medal (Korea), Vietnam Service Medal, Parachutist Badge, and Army Good Conduct Medal.
In 1971, while on vacation in Paris, he met the love of his life, Christiane Green, “Christine”. A year later they were married and started the journey of their life together: from Munich, Germany to Colorado Springs, CO to South Korea, back to Krauznach, Germany to Fort Sheridan, IL, back to Mainz, Germany until finally arriving at Fort Sam Houston
Allen is proceeded in death by his wife of 47 years, Christiane S. Crocker, who passed away on December 4, 2019; as well as his longtime friend, Jack Crowson who passed away in February of 2008. Allen is survived by Jack’s widow, Mary Crowson; and Goddaughter, Janie Crowson-williams and her husband, Charlie Williams. His loved ones remember his strength and kindness.
An interment service honoring the life of James “Allen” Crocker will be held at Fort Sam Houston National Cemetery on January 11, 2022 at 1:45pm in Pavilion 5.