The increase in consumer prices slowed down in December in the euro area

Consumer prices inflation slowed in December.

Based on preliminary data published by Eurostat, the statistical authority of the European Union, on Wednesday, inflation was 2.0 percent, which was in line with economists’ expectations. In November, inflation was 2.1 percent.

Energy became cheaper in December by 1.9 percent compared to the same time last year. On the other hand, unprocessed foodstuffs became more expensive by 4.2 percent, services by 3.4 percent and industrial products by 0.4 percent.

Core inflation, closely monitored by central banks and economists, was 2.3 percent. In November, it was 2.4 percent.

Core inflation is an important measure because the direct impact of sensitively changing energy and food prices on consumer prices has been removed from it.

European according to the central bank’s price stability objective, inflation must be two percent in the medium term.

Financial markets believe that the central bank will keep its key interest rate unchanged because inflation has been in line with its target for longer and the economic recovery is getting stronger.

“Our interest rate decisions are based in particular on an assessment of the inflation outlook and related risks, which takes into account the latest information on the economy and financial conditions, the development of core inflation and the strength of monetary policy transmission. We do not commit to any specific interest rate in advance,” said the Governor of the central bank Christine Lagarde in December.

In December based on preliminary data, inflation was fastest in Estonia, Slovakia and Austria. In Estonia and Slovakia, consumer prices rose by 4.1 percent from a year ago, and in Austria by 3.9 percent.

The slowest inflation was in Cyprus, France and Italy. In Cyprus, prices rose by 0.1 percent from the same time last year, in France by 0.7 percent and in Italy by 1.2 percent.

In Finland, inflation was 1.8 percent in December, which was the fourth slowest in the euro area.