The annual inflation rate in the Euro Area rose for the third consecutive month, reaching 2.4% in December 2024, the highest level since July.
Euro area inflation rate rises to 2.4%
This was up from 2.2% in November and aligned with expectations, according to preliminary estimates. The year-end increase was largely anticipated due to base effects, as last year's significant energy price declines are no longer part of the annual comparison. Energy prices saw their first increase since July, rising by 0.1% compared to a 2% decline in November, while inflation in services accelerated to 4%, up from 3.9%. On the other hand, inflation for food, alcohol, and tobacco remained steady at 2.7%, and eased for non-energy industrial goods (0.5% vs. 0.6%).
Germany has the highest inflation rate
Among the Eurozone's largest economies, inflation rose in Germany (2.8% vs. 2.4%), France (1.8% vs. 1.7%), and Spain (2.8% vs. 2.4%), while slowing in Italy (1.4% vs. 1.5%). Core inflation, which excludes energy, food, alcohol, and tobacco, held steady at 2.7%. The European Central Bank anticipates inflation will return to its 2% target by the end of the year.
