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Eurozone inflation remains at 2.4% - YAHOO FINANCE
Eurozone consumer price inflation hit an annual rate of 2.4% in December, new data shows, the same level as November and in line with economist expectations.
Month-on-month inflation was at 0.4%, also in line with inflation and matching November levels.
Meanwhile core inflation — a measure that strips out volatile parts of the economy like food and fuel prices — stayed at 2.7%.
In December 2024, the highest contribution to the annual euro area inflation rate came from services, followed by food, alcohol and tobacco, non-energy industrial goods and energy.
Despite being higher than the 2% target rate, the data shores up the position of the European Central Bank, which is expected to implement back-to-back interest rate cuts at least until July in an effort to shield the weak euro zone economy. According to a Reuters poll of economists, the bloc's central bank feels it faces an imminent threat from US tariffs.
All 77 economists in the poll carried out earlier this week said the deposit rate would fall another 25 basis points this month to 2.75%. A 60% majority expect three more cuts by mid-year.
Read more: Pound, gold and oil prices in focus: commodity and currency check, 17
The print follows UK inflation data released on Wednesday, which showed the rate of price increases unexpectedly slowing in December, after two months of rises as hotel prices dipped and tobacco costs eased.
Prices rose by 2.5% in the year to December, down from 2.6% the month before, the Office for National Statistics (ONS) said. It means prices are still rising but at a slower pace than before.
Easing price rises in restaurants and falling hotel prices last month helped the overall inflation rate come down, as did a slowing in tobacco, clothing, and footwear inflation.
