Ireland has once again recorded the highest rate of inflation in the eurozone which climbed a further 0.1 per cent to 2.3 per cent in December, the European Union's statistics agency said this afternoon.
The rise was in line with economist's expectations, but higher than Eurostat's initial estimate of 2.2 per cent and above the European Central Bank's target of 2 per cent.
Economists say higher energy prices, upward revisions to German and Italian inflation and a higher-than-expected rate in France are factors behind the rise.
However, weak growth and the euro's appreciation against the dollar have kept inflation in check.
Despite the increase in the broad rate, economists aren't worried about the inflation outlook for the euro zone. They remain convinced it will moderate in 2003.
The core rate, which excludes volatile items such as energy and food prices, continued to slow, to 2.2 per cent in December from 2.3 per cent the previous month.
Germany continued to have the zone's lowest rate at 1.1 per cent, followed by Belgium with 1.3 per cent. Ireland recorded the highest rate at 4.6 per cent. Spain and Portugal were close behind with 4 per cent.