The inflation rate in the Eurozone fell to 2% in December, concluding the year 2025 at the target set by the European Central Bank.
The inflation rate reached 2.0% on an annual basis, compared to 2.1% in November, according to a preliminary estimate published by the statistical office Eurostat on Wednesday. This figure aligns with the expectations of economists surveyed by FactSet and Bloomberg.
Consequently, consumer prices have returned to the target level set by the European Central Bank, which is fixed at 2% over the medium term.
Core inflation excludes energy and food
The European statistical office stated that core inflation, which excludes energy and food and serves as a benchmark for experts, also slowed slightly, falling to 2.3% on an annual basis from 2.4% in November.
This data is likely to reinforce expectations that the European Central Bank will keep its key interest rates stable at its next meeting scheduled for early February.
In December, the European Central Bank kept its key interest rate at 2%, a level that has remained unchanged since June. Although the central bank emphasized that “all options are on the table” regarding its upcoming decisions, economists currently do not anticipate significant measures concerning key interest rates in 2026.
Eurostat
Eurostat is the statistical office of the European Union, responsible for publishing high-quality Europe-wide statistics and indicators that enable comparisons between countries and regions. It was established in 1953 to support the nascent European Coal and Steel Community, and its role has expanded alongside the EU to provide key data for policymaking, analysis, and public information.
Eurozone
The Eurozone is a monetary union of 20 European Union member states that have adopted the euro as their sole legal tender. It was formally established in 1999 with an initial 11 countries, creating a shared central bank (the ECB) and a common monetary policy to foster economic integration and stability.
European Central Bank
The European Central Bank (ECB) is the central bank for the euro and the core institution of the Eurosystem, responsible for monetary policy in the euro area. It was established in 1998, following the Treaty of Amsterdam, to ensure price stability and oversee the financial system ahead of the euro’s physical introduction in 1999. Its headquarters are located in Frankfurt, Germany.
FactSet
FactSet is a financial data and software company founded in 1978 by Howard Wille and Charles Snyder, originally providing computer-based financial analysis to investment professionals. It has since grown into a global firm offering integrated data, analytics, and workflow solutions primarily for the investment community.
Bloomberg
Bloomberg is a global financial data, software, and media company founded in 1981 by Michael Bloomberg. It is best known for its Bloomberg Terminal, a computer system that provides real-time financial market data and trading capabilities to professionals. The company’s headquarters, Bloomberg LP, is located in New York City.
