Eurozone: Inflation drops in December
January 17, 2019
According to complete data released by Eurostat on 17 January, harmonized inflation came in at 1.6% in December, matching the preliminary estimate and below November’s 1.9%. December’s result marks an eight-month low. Inflation sits below the European Central Bank’s target rate of near, but under, 2.0%. Lower price pressures for energy as the impact from higher oil prices faded drove December’s fall.
Annual average harmonized inflation was unchanged at November’s 1.7% in December. Core inflation was also stable at the previous month’s 1.1%. On a monthly basis, harmonized consumer prices recorded flat growth, contrasting the 0.2% drop seen in November.
Among the countries in the common-currency bloc, Greece (0.6%) and Portugal (0.6%) recorded the lowest inflation in December. On the flipside, Estonia (3.3%) and Latvia (2.5%) experienced the highest price pressures. Regarding the largest economies in the Eurozone, inflation fell across-the-board, with price pressures easing in France (1.9%), Germany (1.8%), Italy (1.2%) and Spain (1.2%) in December.
Eurozone Inflation Forecast
FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 1.6% in 2019. For 2020, panelists also expect inflation to average 1.6%.