Euro area consumer price inflation rose in December, mainly due to the energy-related base effects, while the core measure remained strong despite slowing slightly, underpinning the European Central Bank's policy stance that it is too early to think of interest rate cuts as there is more work to be done to bring price growth to the 2.0 percent target. UNDERLYING INFLATION REMAINS STRONG The consumer price index, or CPI, rose 2.9 percent year-on-year following a 2.4 percent increase in November, preliminary estimates from the statistical office Eurostat showed Friday. Economists had forecast 3.0 percent inflation. Core inflation, which excludes prices of energy, food, and alcohol and tobacco, slowed to 3.4 percent from 3.6 percent. Economists had expected the figure to ease to 3.5 percent. Compared to the previous month, Eurozone consumer prices rose 0.2 percent in December. Prices of food, alcohol & tobacco rose 6.1 percent year-on-year after a 6.9 percent gain in the previous month. Services inflation was stable at 4.0 percent. Energy prices decreased 6.7 percent from a year ago, following an 11.5 percent decline in November. Prices of non-energy industrial goods rose 2.5 percent after a 2.9 percent growth in the previous month.
Figures out of Germany and France this week also revealed similar trends for inflation.
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May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.