Inflation in the Eurozone accelerated more than forecast in December, hitting an 8-month high, thereby providing some relief to ECB policymakers before growth slows again.
According to data released by the Eurostat Statistics Bureau on Tuesday, preliminary estimates of the Eurozone’s consumer price index rose at an annual pace of 1.3 percent in December, compared with 1 percent in November.
Analysts estimated that inflation in the Eurozone would rise to 1.3 percent during the last month of 2019 year-on-year.
The increase in inflation was boosted by the rise in food, alcohol and tobacco costs at an annual high of 2 percent, up from 1.9 percent in November.
Service costs increased 1.8 percent in December from 1.9 percent the previous month, and prices of industrial goods, excluding energy, grew by 0.4 percent after stabilizing in November.
For the energy price index, it grew 0.2 percent last month, compared with a 3.2 percent decline the previous month.
The core inflation rate, which excludes energy, food, alcohol and tobacco prices, recorded 1.3 percent in December, the same as the previous month.
The ECB is not expected to take further measures in the coming period, as the stimulus package in September is predicted to continue for months to come.
Meanwhile, the EURUSD pair fell by 0.18 percent to $1.1173, ahead of the
release of the U.S. ISM non-manufacturing data later in the day.