The annual inflation rate in the euro area decreased to 2% in December, while core inflation reached 2.3%. Analysts predict a continuation of this trend.

According to preliminary data published by Eurostat, the annual inflation rate in the euro area decreased to 2% in December 2025, down from 2.1% in the previous month, according to analysts' estimates. Core inflation, which excludes volatile items such as energy and food, fell to 2.3%, down from 2.4%. Energy prices decreased by 1.9%, while service prices increased by 3.4%, and food, alcoholic beverages, and tobacco recorded a 2.6% increase. The preliminary estimate will be revised on January 19, including data from across the European Union. Analysts suggest that the decrease in energy prices and the appreciation of the euro could lead to a decline in prices, but fiscal spending and strong domestic demand could cause prices to rise in 2026. The data confirms that inflation is under control, giving the European Central Bank time to assess the situation before taking new measures.