Euro Area: Pace of decline in annual prices stable in December
Harmonized consumer prices fell 0.3% compared to the same period of the previous year in December, matching November’s decrease. Inflation thus remained below the European Central Bank’s target rate of near, but under, 2.0%. December’s drop was due a sharp fall in prices for energy and to somewhat lower prices for non-energy industrial goods. On the other hand, prices for services and for food, alcohol and tobacco rose.
On a monthly basis, harmonized prices rose 0.33% in December, contrasting November’s 0.33% drop. Core inflation, which excludes volatile energy and unprocessed foods prices, was stable at November’s 0.4% in December.