Eurozone Consumer Prices Up 2.4% in December... Inflation Increase Widens for Third Consecutive Month

The consumer price inflation rate in the Eurozone last month rose by 2.4% compared to a year ago.

Customers are shopping at a supermarket in Rome, Italy. Photo by Yonhap News

According to Eurostat, the statistical office of the European Union (EU), the Eurozone's inflation rate (flash estimate) has increased for three consecutive months, rising from 2.0% in October last year to 2.2% in November and 2.4% in December.

The core inflation rate, which reflects the underlying trend in prices, remained steady at 2.7% for the fourth consecutive month. By category, energy prices, which had been declining, rebounded by 0.1% in December for the first time in five months since July last year, driving the overall price increase.

The inflation rate for services showed the steepest rise at 4.0%. Prices for food, alcohol, and tobacco increased by 2.7%, while industrial goods rose by 0.5%.

By country, Germany and Spain each recorded inflation rates of 2.8%, exceeding expectations. France posted 1.8%, and Italy 1.4%, both below November’s figures and forecasts.

The European Central Bank (ECB) has predicted that the medium- to long-term inflation target of 2% will be achieved by the end of this year, but warned that the path will not be easy. ECB President Christine Lagarde stated, "Significant progress was made in reducing inflation in 2024, and we hope that 2025 will be the year when the inflation target is achieved as planned."

Market analysts expect the ECB to cut the deposit rate, currently at 3.00% per annum, by 0.25 percentage points at each of the four monetary policy meetings in the first half of this year.

Bloomberg News analyzed that if Donald Trump, the U.S. President-elect who takes office this month, imposes universal tariffs on all imports including European products as promised, the Eurozone could also be affected.