Eurozone inflation edged higher in December, with annual growth reaching 2.9 percent
The preliminary estimate from Eurostat shows that annual inflation in the Eurozone rose by 0.5 percentage points in December, reaching 2.9 percent. This figure reflects broader price dynamics across member countries, influenced by shifts in several major household expenditures. [Eurostat]
The components contributing most to this uptick were food, alcohol and tobacco, which rose by 6.1 percent year over year. This pressure from essential goods helped to push the overall inflation rate higher even as other prices moved more slowly. [Eurostat]
In Spain, annual inflation remained steady at 3.3 percent in December, the same rate as in the previous month. This stability occurs amid divergent inflation paths within the euro area. [Eurostat]
Following the rise in food, alcohol and tobacco, the services sector also saw prices climb, increasing by 4 percent compared with the previous month and remaining 4 percent higher than a year earlier. This keeps services inflation as a steady contributor to the region’s overall price level. [Eurostat]
Industrial goods excluding energy advanced by 2.5 percent year over year, a notch below November’s 2.9 percent reading, indicating a cooling in some non-energy industrial sectors. [Eurostat]
Energy showed a contrasting behavior, with its inflation rate retreating to 6.7 percent from a much higher level in November when the energy index fell by 11.5 percent. The energy component thus contributed to the mixed picture in price changes across the region. [Eurostat]
Across the euro area, inflation trends diverged, with ten of the 20 member countries recording lower inflation in December. Rates varied widely by country, with Spain remaining unchanged and nine other countries posting increases. [Eurostat]
The highest inflation rates were observed in Slovakia at 6.6 percent, Austria at 5.7 percent, and Croatia at 5.4 percent. Conversely, the lowest rates appeared in Belgium and Italy, both at 0.5 percent, and Latvia at 0 percent. [Eurostat]
When looking at relative positions within the euro area, Spain did not rank alone at the top in December. Germany posted 3.8 percent inflation, Estonia 4.3 percent, Greece 3.7 percent, France 4.1 percent, Malta 3 percent, and Slovenia 3.8 percent. [Eurostat]
On the other hand, several countries reported inflation below Spain in December. Ireland stood at 3.2 percent, Cyprus at 1.9 percent, Lithuania at 1.6 percent, Luxembourg 3.2 percent, and Portugal 1 percent. The Netherlands and Finland also showed lower rates, with figures around 1 percent and 1.6 percent respectively. [Eurostat]