Euro zone inflation hits 2% in December, in line with forecasts

CNBC•January 7, 2026•business

Key Points:

Euro zone inflation stood at 2% in December, matching economists' expectations and aligning with the European Central Bank's (ECB) target, down from 2.1% in November.
Core inflation, excluding volatile items like energy and food, decreased slightly to 2.3% in December from 2.4% in November, while services inflation cooled to 3.4% from 3.5%.
The ECB held its key deposit rate steady at 2% in December, maintaining rates after a series of cuts from a 2024 peak of 4%, with officials indicating the easing cycle may be nearing its end.
Market reactions were muted, but the inflation rate hitting the ECB's target could