Euro zone inflation accelerated to 2.9% in December

Eurozone inflation accelerated in December less than analysts expected, although core inflation continued to slow.‎

According to data released by Eurostat on Friday, the consumer price index rose by about 2.9% last month, compared to 2.4% in November and compared to expectations that it would record 3%.

Meanwhile, the core inflation rate, which does not take into account the prices of energy, food, alcohol and tobacco, recorded 3.4%, compared to 3.6% in November.

Energy prices fell by 6.7%, but at a slower pace than in November, when they fell by 11.5%.

The data released also confirmed the European Central Bank’s expectations that inflation reached its lowest levels in November and will now remain stable in the range of 2.5% to 3% until 2024, which is well above the bank’s target of 2%, before slowing again in Year 2025.

It is expected that the data issued today will open the door to discussion regarding the expectations of the European Central Bank’s monetary policy path in the coming period, as market expectations indicate the start of interest cuts before next summer.