Inflation in the economic zone that comprises the European Union dropped to 9.2% in December, the second consecutive monthly decline, as energy prices continued to fall.
The December inflation reading of 9.2% follows a November inflation rate of 10.1%, according to data from the European statistics agency known as Eurostat.
The European economic zone has come under pressure in the wake of Russia’s invasion of Ukraine last year, with energy and food costs soaring.
To help lower consumer prices, the European Central Bank (ECB) increased interest rates four times in 2022 and said it is likely to continue lifting rates this year. The central bank’s main interest rate currently sits at 2%.
At the time, the European Central Bank has forecast an average inflation rate of 8.4% for 2022, 6.3% in 2023 and 3.4% for 2024.
The central bank targets inflation at an annualized 2%.
Energy costs have dropped throughout Europe in recent months. In all, energy costs declined from 34.9% in November to 25.7% in December, according to the latest Eurostat data.
