In December, consumer prices fell 0.1% over the previous month, which matched the result tallied in November (previously reported: flat reading). A decline in prices was observed in food and non-alcoholic beverages, household equipment, and in health, as well as in recreation and culture. Conversely, prices for services and transport increased.
Annual headline inflation inched down from 0.5% in November to 0.4% in December, the lowest level since February 2010. Meanwhile, annual average HICP inflation - based on the harmonized index of consumer prices - edged down from 1.7% in November to 1.5% in December, the lowest level since February 2011. The Central Bank expects HICP inflation to average 1.5% in 2014.
FocusEconomics Consensus Forecast participants expect HICP inflation to average 1.5% this year, which is down 0.3 percentage points compared to last month's forecast. In 2015, the panel expects HICP inflation to increase to 2.2%.