Annual inflation across the 16-member eurozone last December is expected to reach a two-year high, according to a flash estimate released by the EU’s statistics arm Eurostat yesterday.

At an estimated 2.2 per cent, the eurozone’s annual inflation rate is the highest to be registered since November 2008.

While the policy of the European Central Bank is to keep annual inflation in the eurozone under two per cent annually, December’s first estimates show that this target has been surpassed. However, according to analysts, this will not necessarily mean that the ECB will increase interest rates as these are expected to be kept on the low side to help a still struggling economy.

The rise in prices in December is being attributed mainly to the rising commodity prices including oil and grain.

The individual inflation rates of member states in December have not yet been released.

In November, Malta’s annual inflation rate was the second highest in the EU following Greece. It stood at 3.4 per cent against the eurozone’s average of 1.9 per cent.