Inflation in the euro zone fell for a second consecutive month in December, marking the first drop into single digits since September, the EU statistics agency said on Friday.
The EU statistics office said on Friday that inflation in the euro zone declined for the second consecutive month in December, marking the first drop into single digits since September.
According to preliminary data released on Friday by Eurostat, headline inflation, which includes food and energy costs, came in at 9.2% year over year in December. This follows the headline inflation rate of 10.1% in November, which was the first modest fall in prices since June 2021.
Inflation has been showing indications of slowing, but experts believe it’s too soon to celebrate and don’t expect the European Central Bank to change its tone.
Since Russia’s invasion of Ukraine in February 2022, energy and food prices have skyrocketed, putting a severe pressure on the economy of the euro zone. In an effort to tackle rising prices, the European Central Bank hiked interest rates four times in 2022 and suggested it is likely to continue doing so this year. The benchmark rate set by the bank is now 2%.
