Euro-zone1 annual inflation2 is expected to be 2.2 percent in December 2005 according to a flash estimate issued by Eurostat, the Statistical Office of the European Communities.
It was 2.3 percent in November3.
Computation of flash estimates
1Euro-zone inflation is measured by the Monetary Union Index of Consumer Prices (MUICP).
2To compute the MUICP flash estimates, Eurostat uses early price information relating to the reference month from Member States for which data are available as well as early information about energy prices.
3The flash estimation procedure for the MUICP combines historical information with partial information on price developments in the most recent months to give a total index for the euro-zone.
No detailed breakdown is available. Experience has shown the procedure to be reliable (11 times exactly anticipating the inflation rate, 12 times differing by 0.1 and once differing by 0.2, in January 2005, over the last two years).
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