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Eurozone Inflation At 8-month Low

Eurozone's consumer price inflation slowed more-than-expected in December to its lowest level in eight months, preliminary figures from Eurostat showed on Friday.

The consumer price index rose 1.6 percent year-on-year following a 1.9 percent increase in November. Economists had forecast 1.8 percent inflation.

The latest inflation rate was the lowest since April, when the rate was 1.3 percent.

Core inflation, which excludes prices of energy, food, alcohol & tobacco, was 1 percent in December, unchanged from November. That was in line with economists' expectations.

In December, energy prices registered the biggest annual increase of 5.5 percent versus 9.1 percent in November.

Prices of food, alcohol & tobacco grew 1.8 percent, which was slower than the 1.9 percent gain in the previous month.

Eurostat is set to release the final figures for December inflation on January 17.

Separate data from Eurostat showed that euro area producer price inflation slowed to 4 percent in November from 4.9 percent in October. Economists had predicted 4.2 percent price growth.

Energy sector registered the biggest annual gain of 10.8 percent, followed by intermediate goods with a 2.6 percent increase.

Producer prices decreased 0.3 percent month-on-month after a 0.8 percent increase in October. Economists were looking for a 0.2 percent fall.

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