Euro Area Annual Inflation Drops to 2.0 Percent in December

Brussels: The European statistical office, Eurostat, announced on Wednesday that the annual inflation rate in the euro area decreased to 2.0 percent in December 2025, down from 2.1 percent in November, according to its preliminary estimates.

According to Kuwait News Agency, Eurostat's report highlighted that the services sector experienced the highest annual inflation rate in December at 4.3 percent, up from 3.5 percent in November. The food, alcohol, and tobacco sector followed with an inflation rate of 2.6 percent, slightly higher than the 2.4 percent recorded in the previous month.

In contrast, non-energy industrial goods noted a marginal increase of 0.4 percent in December, compared to 0.5 percent in November. Meanwhile, the energy sector continued its decline, registering a decrease of -1.9 percent, in contrast to a drop of -0.5 percent in November.