By Sama Marwan,
Annual inflation in the Eurozone rose for the third consecutive month, reaching 2.4%, according to data from Eurostat, the European statistical office. This marks the highest level since July.
The Spanish newspaper La Razón highlighted that the data showed a slight increase in energy prices by 0.1% in December, compared to a 2% decline in November, marking the first positive reading since July. Additionally, the inflation rate in the services sector rose to 4% in December, up from 3.9% in the previous month.
Conversely, food, alcohol, and tobacco prices experienced a slight decline, as the rise in prices of processed food, tobacco, and alcohol was offset by a drop in the prices of unprocessed food.
Among the major economies in the Eurozone:
- Germany saw its inflation rate climb to 2.8% in December, up from 2.4% in November.
- France recorded a slight increase to 1.8%, compared to 1.7% in the previous month.
- Italy experienced a decrease in its inflation rate to 1.4% in December, down from 1.5% in November.
Core inflation in the Eurozone—which excludes alcohol, tobacco, food, and energy due to their volatility—remained steady at 2.7% in December, matching the level recorded over the previous three months and aligning with analysts’ expectations.
The rise in inflation in Germany is primarily attributed to higher food and service prices, along with a slower decline in energy costs. In France, similar economic factors were at play, with rising electricity tariffs exacerbating the issue. Meanwhile, in Italy, the decrease in inflation is largely due to falling prices of industrial goods and services.
