Final inflation data confirmed that price pressures in the Eurozone continued to ease into year-end. Eurostat reported headline CPI at 1.9% yoy in December, down from 2.1% in November. Core inflation slowed modestly to 2.3% yoy from 2.4%.
Despite the overall cooling, inflation remained heavily services-led. Services accounted for +1.54pp of headline inflation, far outweighing contributions from food, alcohol and tobacco (+0.49pp) and non-energy industrial goods (+0.09pp). Energy prices continued to offset inflation pressures, subtracting -0.18pp.
At the EU level, CPI was finalized at 2.3% yoy, also easing from 2.4% previously. Disinflation was broad-based, with inflation falling in 18 countries, though dispersion remains notable. Inflation was lowest in Cyprus (0.1%), France (0.7%) and Italy (1.2%). Romania (8.6%), Slovakia (4.1%) and Estonia (4.0%) posted elevated readings.
