Charting the Global Economy: Core Inflation in Europe Hits a Record

An underlying gauge of euro-zone inflation flared to a record last month, indicating persistent price pressures that will likely extend the European Central Bank’s most-aggressive bout of interest-rate hikes in its history.

Stripping out food and energy prices, so-called core inflation rose to an all-time high of 5.2% in December. Slower growth in energy costs was the only reason for the moderation in the overall annual figure, which fell below 10% for the first time in four months.