Continued low inflation in the euro area

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Inflation in the European Union bloc fell further in December; As a result of the slow rise in energy prices.

According to data from the Eurostat statistics office, prices in 19 countries that use the euro rose in 2022 at an annual rate of 9.2% in December, while they rose in November by 10.1%, while annual inflation in the eurozone reached a record high. 10.6% during the month of October.

Energy inflation in the region decreased to 25.7% in December, compared to 34.9% in November. The cost of food increased by 13.8% in December, compared to 13.6% in the previous month. In addition, service inflation rose to 4.4% from 4.2%.

Core inflation, which excludes volatile food and energy prices, was 5.2% in December, up 5% from November.

It is noteworthy that the data is likely to encourage the European Central Bank to stick to its policy of raising borrowing costs, as the central bank – which raised interest rates strongly last year – indicated that it will continue with the increases in 2023, with the aim of keeping inflation near 2%.