Inflation up

Goods in the eurozone increased in price by 2.4 percent

Inflation in the eurozone stood at 2.4 percent in December.

(Bild: dpa/Uli Deck)

Inflationary pressure in the eurozone intensified for the third month in a row in December. Goods and services became 2.4% more expensive on average at the end of the year compared to November. This is the highest level since July 2024.

People had to dig deeper into their pockets for services and food in particular. Services became four percent more expensive in December, making them the biggest price driver. Core inflation, which excludes volatile prices for energy, food, alcohol and tobacco, remained at 2.7% in December. 

At the end of the year, Belgium and Croatia had the highest inflation among the 20 euro countries at 4.4 and 4.5 percent respectively. It was lowest in Ireland (1 percent) and Italy (1.4 percent). In Austria, it was 2.1 percent in December.

Will the key interest rate be lowered?
In November, the inflation rate in the eurozone was still at 2.2 percent, in October at 2 percent and in September at 1.7 percent. Economists assume that the European Central Bank (ECB) will lower the key interest rate again at the end of January. The interest rate at which banks can obtain fresh money from the central bank is currently 3.15 percent.

Due to the weak economy, inflation is likely to gradually subside over the course of the year. The ECB is aiming for an inflation rate of two percent in the medium term. In December, it lowered its key interest rates by 0.25 percentage points.