(AP/Newsis) Downtown Frankfurt, Germany
(Seoul = Newsis) Reporter Kim Jae-young = The European Union’s statistics agency Eurostat announced on the 7th that the annual consumer price inflation in 20 Eurozone countries in December was 2.4%, up from 2.2% in the previous month.
The harmonized consumer price index (HICP), the euro zone’s integrated consumer price index, had an annual change rate of 1.7% in September last year compared to the same period last year, falling below the 2% inflation target of the euro zone’s unified central bank, the European Central Bank (ECB).
However, inflation, which rebounded to 2.0% in October, continues to rise to 2.2% in November and 2.4% in December.
Prices in the service sector, which accounts for 80% of the Eurozone economy, rose 4.0% per year. The food, alcohol and tobacco sector rose 2.7%, and energy prices rose only 0.1% per year. The monthly inflation rate was 0.4%.
Germany’s annual inflation was 2.8% and France’s was 1.8%. Ireland was at 1.0%, while Belgium was at 4.4% and Croatia at 4.5%.
Despite the rebound in inflation, the ECB lowered the policy interest rate for the first time in June last year three times in a row in September, October, and December. When commercial banks deposit money with the ECB instead of lending, the central deposit interest rate is lowered from 4.0% to 3.0%.
The Eurozone economy, which grew by 0.4% in 2023, grew by 0.4% in the third quarter of 2024 and is expected to grow by about 0.7% overall.
Eurostat’s inflation announcement today is a preliminary figure, and the confirmed figure will be released on the 17th. Eurostat’s inflation ‘flash’ announcement, which was to be released on the last day of the month, was delayed due to the year-end holidays.
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Source: www.newsis.com
