Overview
- Eurostat’s flash estimate put annual inflation at 2.0% in December, down from 2.1% in November and in line with a Reuters poll.
- Core inflation eased to 2.3% year on year, with services inflation cooling to 3.4%.
- Falling energy costs pulled overall price growth lower even as food inflation picked up.
- The European Central Bank kept the deposit rate at 2% in December and is deciding policy meeting by meeting ahead of its Feb. 5 meeting.
- ECB projections point to sub‑2% inflation in 2026–27 before returning to target by 2028, and an ECB survey shows consumer expectations trending down toward the goal.