Annual inflation in the euro area rises to in December 2023

Annual inflation in the euro zone increased to 9.2% in December 2023, marking a notable rise from its lowest level in over two years, which was 2.4% in November. This upward movement represents the first increase in inflation since April and is primarily attributed to energy-related base effects.

Energy prices experienced a milder decline, falling by 6.7% last month compared to -11.5% in November. Services inflation remained steady at 4.0%.

Conversely, the rate of price growth was more subdued for food, alcohol, and tobacco, registering 6.1% compared to 6.9%. Non-energy industrial goods also showed moderation, with a growth rate of 2.5% versus 2.9%.

The core inflation rate, which excludes volatile food and energy prices, declined to 3.4%, reaching its lowest level since March 2022.

On a monthly basis, consumer prices increased by 0.2% in December, rebounding from a 0.6% decline in November.