Eurostat data released on Wednesday indicated that annual inflation in the Eurozone reached 2% in December. This figure aligns with expectations from economists polled by Reuters and matches the European Central Bank's (ECB) target. In November, the inflation rate stood at 2.1%.
Core inflation, which excludes volatile prices for energy, food, alcohol, and tobacco, decreased to 2.3% in the year ending December, a reduction from 2.4% in November. Similarly, the annual rate of services inflation cooled to 3.4%, down from 3.5% in November.
The ECB maintained its key deposit facility rate at 2% in December for the fourth consecutive time. The central bank's last rate adjustment was a cut in June, part of a cycle that has lowered rates from a 2024 peak of 4%.
Statements from senior ECB board members late last year suggested that the current easing cycle is nearing its conclusion. The ECB has consistently stated its intention to adopt a meeting-by-meeting, data-dependent approach to setting interest rates.
Following the release of this data on Wednesday, both the euro and the Stoxx 600 index remained unchanged.