Eurozone December Inflation Rate at 8-Month Low


Annual inflation rate in the Euro Area is expected to ease to 1.6 percent in December of 2018 from 1.9 percent in the previous month and below market expectations of 1.8 percent. It was the lowest inflation rate since April, mainly due to a slowdown in cost of energy and food, alcohol & tobacco.

Looking at the main components of euro area inflation, prices are expected to increase at a softer pace for energy (5.5 percent compared to 9.1 percent in November); food, alcohol & tobacco (1.8 percent compared to 1.9 percent) mostly due to processed food, alcohol & tobacco (1.7 percent compared to 2.0 percent). On the other hand, inflation should remained unchanged for services (1.3 percent, the same as in November) and non-energy industrial goods (0.4 percent). 

Annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco and at which the ECB looks in its policy decisions, is likely to remain steady at 1 percent, unchanged from the prior month and in line with market consensus.

Eurozone December Inflation Rate at 8-Month Low


Eurostat | Stefanie Moya | stefanie.moya@tradingeconomics.com
1/4/2019 6:38:21 PM