2 months ago
Economic Indicators

Euro Zone Annual Inflation 1.6% in December

Investing.com - Euro zone consumer prices were flat in December, while the annual rate of inflation fell to 1.6% from

Investing.com - Euro zone consumer prices were flat in December, while the annual rate of inflation fell to 1.6% from 1.9% in November, according to a revised estimate released on Thursday.

The monthly reading was revised up from an initial estimate of a 0.2% drop in prices, while the annual reading was unchanged, the bloc’s statistics agency Eurostat said.

Economists had not expected any revisions to the flash estimate that was released two weeks ago.

Core inflation, which excludes energy, food, alcohol and tobacco prices, was confirmed at an annual rate of 1.0%.

The European Central Bank targets a headline inflation rate of close to, but just below 2%. The Euro-zone inflation rate peaked in October at 2.2% but has fallen sharply since then, against a background of a broader economic slowdown. Data released in Germany earlier this week showed Europe's largest economy only narrowly avoided recession at the end of last year.