Euro zone inflation eased to 2.0% in December, down from 2.1% in November, reaching the European Central Bank’s target, according to data released on Wednesday by Eurostat.
The reading came in line with economists’ expectations and marks an important point in the inflation outlook, as price growth has now aligned with the ECB’s long-standing 2% objective.
Lower energy prices continued to weigh on headline inflation, helping to offset rising food costs during the month. The data indicates that inflation could decline further in the months ahead if energy prices keep falling and continue to counter domestic price pressures.
December’s figure is the latest sign of a steady cooling trend across the euro zone, where inflation has been gradually moderating after elevated levels earlier in the year.
