Inflation eases in December from November

Latest reading: Harmonized consumer prices increased 1.9% on a year-on-year basis in December, following a 2.1% rise in the previous month. December's reading undershot market estimates and was the weakest since May 2025. Relative to the prior month's data, there were reduced price pressures for energy prices (-1.9% on a year-on-year basis vs -0.5% in November), services (+3.4% vs +3.5% in November) and non-energy industrial goods (+0.4% vs +0.5% in November). In contrast, price pressures were higher for food, alcohol and tobacco in December (+2.6% vs +2.4% in November). Meanwhile, core consumer prices increased 2.3% on a year-on-year basis in December, following a 2.4% rise in the prior month. Lastly, harmonized consumer prices were up 0.18% in December on a month-on-month basis, following a 0.29% fall in the previous month.

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