Inflation in Europe cooled to an annualized rate of 2% in December, according to data from statistics agency Eurostat.
Economists polled by Reuters (TRI) had expected Europe’s inflation rate to drop to 2% in December from 2.1% in November of last year.
Core inflation, which excludes volatile energy, food, alcohol and tobacco prices, stood at 2.3% in December, down from 2.4% in November.
The annual rate of services inflation fell to 3.4% from 3.5% in November, said Eurostat.
The soft inflation data has kept the European Central Bank (ECB) on the sidelines when it comes to interest rates.
The ECB held its key interest rate at 2% for the fourth consecutive time in December, having last lowered rates in June 2025. Interest rates have come down from 2024's record high of 4%.
European stocks were little changed following the latest inflation data being released.
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