Euro area's inflation rises to 2.9% in December 2023

19 Jan '24

2 min read

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Euro area annual inflation rose to 2.9 per cent in December 2023, up from 2.4 per cent in November, and down from 9.2 per cent a year earlier, as per Eurostat.
EU inflation also increased to 3.4 per cent, lower than the previous year's 10.4 per cent.
Denmark, Italy, and Belgium had the lowest rates, while Czechia, Romania, and Slovakia had the highest.

The euro area experienced a rise in annual inflation to 2.9 per cent in December 2023, up from 2.4 per cent in November, according to the latest figures released by Eurostat, the statistical office of the European Union (EU). This rate marks a significant decrease from the 9.2 per cent inflation recorded a year earlier.

In the wider EU, annual inflation also increased, reaching 3.4 per cent in December 2023, compared to 3.1 per cent in November. The rate was substantially lower than the 10.4 per cent observed in the previous year.

Among EU member states, the lowest annual inflation rates in December were observed in Denmark (0.4 per cent), Italy, and Belgium (both 0.5 per cent). On the other hand, the highest rates were seen in Czechia (7.6 per cent), Romania (7 per cent), and Slovakia (6.6 per cent). The data shows a varied inflation landscape across the EU, with annual inflation falling in fifteen member states, remaining stable in one, and rising in eleven, as per Eurostat.

In terms of specific contributions to the annual euro area inflation rate in December, non-energy industrial goods had a significant positive impact, contributing 0.66 percentage points (pp). Conversely, energy prices had a negative contribution, reducing the overall inflation rate by 0.68 pp.

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