Inflation across Europe rose for a third consecutive month in December to reach an annualized 2.4%, according to statistics agency Eurostat.
The December reading was in line with the consensus forecasts of economists polled by the Reuters news agency and marked an increase from 2.2% in November.
Core inflation remained unchanged at 2.7% for a fourth month, also meeting economists’ expectations. However, services inflation increased to 4% from 3.9%.
The latest rise in consumer prices will be closely watched by the European Central Bank (ECB), which is expected to lower interest rates from 3% to 2% throughout this year.
Inflation in Germany, Europe’s largest economy, hit a higher-than-expected 2.9% in December. At the same time, inflation in France came in at 1.8%, below forecasts calling for a 1.9% rise.
Rising energy prices amid cold winter weather across the continent was blamed for exerting upward pressure on inflation in December.
The Euro currency extended its gains against the U.S. dollar following the December inflation print, trading 0.37% higher at $1.0428 in London, England.
