Eurozone inflation ends 2024 on the rise: 2.4 percent in December

Brussels – Eurozone inflation increased in December. Preliminary estimates released by Eurostat show a rise in the cost of living to 2.4 percent, representing an increase of 0.2 percentage points (pp) compared to November (2.2). Driving the inflation index upward was mainly energy (at 0.1 percent, compared to -2 percent in November), followed by services (4 percent, compared to 3.9 percent in November). Food was stable (2.7 percent).

Final data are due January 17. If preliminary estimates are confirmed, the eurozone would record its third consecutive increase in inflation. Following the 1.7 percent recorded in September, eurozone inflation touched 2 percent in October, 2.2 percent in November, and 2.4 in December.Among the major eurozone economies, the European Statistical Agency estimates inflation increases in Germany and Spain, with an expected rise of 0.4 percentage points to 2.8 percent for both. Bucking the trend is Italy, where inflation remains below average and is expected to decline.

The declared goal of the European Central Bank is to return to the reference target during 2025, with the price index stabilizing during the year. The Governing Council will meet in Frankfurt for appropriate decisions on January 30, thus after the final December data. Based on the information, it will decide whether to continue with restrictive monetary policies or make new interest rate cuts instead.