Women wearing face masks pose for a picture in front of the Eiffel Tower.
Euro zone inflation hit a new record high in December, raising more questions about the European Central Bank's monetary policy.
The headline inflation rate was 5% for the month, compared to the same month last year. The all-time high of 4.9% was followed by the highest ever figure.
The increase was due to higher energy prices.
Capital Economics said in a note Friday that headline euro-zone inflation should fall this year as the energy component plummets.
Money managers are debating whether the European Central Bank should take a more aggressive stance against inflation after two months of increases.
The central bank said last month that it would be cutting its monthly asset purchases, but would continue its unprecedented level of stimulation.
The European Central Bank said that monetary accommodation was still needed for inflation to be stable at the 2% inflation target over the medium term.
The forecasts were updated in December and put headline inflation at 1.8%. The rate is expected to overshoot the bank's target by 3.2%.
The economists say that the biggest risks for economic performance are the pandemic and inflation.
The analysts at Berenberg said that if inflation were to spring further and persistent upside surprises, central banks might have to step on the brakes hard.
The first hike could be in the spring of 2023.
The euro was up against the dollar by mid-morning in Europe.