Inflation rose in December to 2.9% in the eurozone and 3.4% in the EU

The annual inflation rate rose by five tenths in December in the eurozonetill the 2.9%and three tenths in the whole of the European Union (EU), to 3.4%This is evident from revised data published on Wednesday by the community statistics agency Eurostat.

Eurostat thus confirms its preliminary estimate for the eurozone, also regarding underlying inflation (it excludes the effect of energy and fresh food as these are the most volatile) which fell to 3.4%, two-tenths less than in November.

In December there was a moderation in the year-on-year increase in prices in all parts of the shopping basket: food, alcohol And tobacco grew by 6.1%, eight tenths less than in November, while the services sector recorded an inflation rate of 4%, and non-industrial energy goods a rate of 2.5%.

However, the prices of energy They slowed their decline to 6.7%, compared to the 11.5% drop they recorded the month before.

For example, in December the largest contribution to inflation in the eurozone came from the eurozone Services (1.74 percentage points), followed by food, alcohol and tobacco (1.21 percentage points) and non-industrial energy goods (0.66 percentage points), while the decline in energy prices subtracted 0.68 percentage points.

Despite the improved outlook, the European Central Bank (ECB) does not expect inflation in the eurozone to approach its target Target of 2% until 2025although the declines in interest rates recorded in recent months make it more likely that the monetary policy applied by the institution will be softened to contain a price increase.

Inflation fell in December in 15 of the 27 EU Member States, remained stable in one – Spain – and rose in 11, although inflation rates still vary widely across countries.