US EditionEuro zone inflation hits 2% in December, in line with forecasts
Core inflation fell to 2.3% as energy prices declined 1.9% year-on-year, easing overall price pressures and aligning with the ECB's target for price stability.
- Wednesday, flash Eurostat data showed Euro zone annual inflation eased to 2.0% in December, matching economists polled by Reuters and the European Central Bank's target.
- Falling energy costs drove the slowdown as energy prices fell 1.9% year-on-year, while core inflation eased to 2.3% and services inflation cooled to 3.4%.
- Monthly data showed consumer prices rose 0.2% in December after a 0.3% fall, with Ireland and Austria up 0.6% and Malta and Estonia down 0.5% and 0.4%, while food, alcohol and tobacco inflation rose to 2.6% and non-energy industrial goods slowed to 0.4%.
- Markets reacted with limited moves as Germany's DAX rose 0.5%, German Bund yields fell five basis points to 2.78%, the euro held at $1.1685, and Polymarket sees 97% odds of unchanged rates on Feb. 5.
- Top ECB board members said the easing cycle is near its end but will remain data dependent, and Professor Emeritus Joe Nellis said, `The key takeaway is that price pressures are normalising after several turbulent years`.
28 Articles
28 Articles
Eurozone consumer price inflation slowed to 2.0 percent year-on-year in December from 2.1 percent in the previous month, keeping inflation in line with the European Central Bank's 2 percent target, according to a flash estimate published by the European statistics office Eurostat on Wednesday.
In Portugal inflation was established in 2.4% in December, below 3.1% of the month of homologous activity but still higher than 2.1% of the inflation presented in November 2025.
Inflation in the euro area fell at the end of 2025.
Euro zone inflation eases to 2% before likely move below target in 2026
Euro zone inflation slowed as expected last month, hitting the European Central Bank's 2% target before likely moving lower in the coming months as falling energy costs offset lingering domestic price pressures, Eurostat data showed on Wednesday.
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