Inflation in the eurozone rose to 2.4%

According to preliminary data from Eurostat, inflation in the eurozone accelerated to 2.4% in annual terms in December 2024, driven by rising prices in the service sector, as well as for food, manufactured goods and energy. 

Compared to November, when inflation was 2.2%, the growth rate of consumer prices increased. The analysts' forecast also predicted an increase in inflation to 2.4%.

Services have risen the most, with inflation reaching 4%. Food, alcohol and tobacco products increased in price by 2.7%, non-energy industrial goods – by 0.5%, and energy resources - by 0.1%. At the same time, core inflation (excluding energy, food, alcohol and tobacco) remained at 2.7% in annual terms.

Compared to November, prices increased by 0.4% in December. The final data on inflation dynamics for December will be published on January 17th.

The inflation situation forces the European Central Bank to remain cautious in its policy. According to economists, the steady rise in prices in the service sector, despite the weak economic outlook, is likely to force the ECB to continue a gradual reduction in interest rates.