December data comes amid speculation over when European Central Bank will cut interest rates
Inflation across the eurozone rose in December after an increase in energy costs, reversing six months of consecutive falls and easing the pressure on the European Central Bank (ECB) to cut interest rates.
Figures from the EU statistical agency Eurostat showed consumer prices across the 20-country bloc rose at an annual rate of 2.9% last month, up from 2.4% in November. Economists polled by Reuters had forecast a slightly higher reading of 3% for December.
The increase in the headline rate comes after the end of government support for utility costs, alongside a smaller annual decline in energy prices in December than in November connected to last year’s one-off subsidy in Germany.
In the flash estimate for December, inflation in food, alcohol and tobacco prices continued to moderate, easing some of the pressure on households across the bloc as the rate across those categories dipped from 6.9% in November to 6.
