Cyprus recorded the lowest inflation rate in the eurozone at 0.1 per cent in December, remaining unchanged from November, according to preliminary data from Eurostat released on Wednesday.
- Cyprus recorded the lowest inflation rate in the eurozone at 0.1 per cent in December, remaining unchanged from November, according to preliminary data from Eurostat released on Wednesday.
- This starkly contrasts with the broader euro area, where annual inflation is estimated to have eased to 2 per cent in December, down from 2.1 per cent in November.
This starkly contrasts with the broader euro area, where annual inflation is estimated to have eased to 2 per cent in December, down from 2.1 per cent in November.
Comparative Inflation Rates Across Europe
Among the larger economies, inflation figures tell a varied story. Germany saw inflation at 2.8 per cent, while Spain and France reported rates of 3.1 per cent and 3.7 per cent respectively. Italy’s inflation, however, stood at a considerably lower rate of 0.7 per cent.
Sector-Specific Insights on Inflation
In the eurozone, services inflation continued to lead with the highest annual rate. In October, services inflation was noted at 3.4 per cent, an increase from 3.2 per cent in September. By December, this rate is again projected to hold at 3.4 per cent, slightly down from 3.5 per cent recorded in November.
Food, alcoholic beverages, and tobacco also followed an upward trajectory. After a decline from 3 per cent in September to 2.5 per cent in October, inflation in this category rebounded to an estimated 2.6 per cent in December, up from 2.4 per cent in November.
Energy Sector Experiences Decline
In contrast, non-energy industrial goods exhibited diminishing price pressures. Inflation in this category decreased from 0.8 per cent in September to 0.6 per cent in October, and further slowed to 0.4 per cent in December, down from 0.5 per cent in November.
Energy inflation, which had shown an annual decrease of 1 per cent in October, turned more negative in December. Prices in this sector are estimated to have fallen by 1.9 per cent year on year, a significant drop from the 0.5 per cent decline recorded in November.
