Eurozone Inflation on the Rise

In a recent preliminary report released by Eurostat, the European Commission's statistical office, the Eurozone's annual inflation rate is expected to reach 2.4% in December. This marks an increase from the previous month's rate of 2.2%, signaling a steady climb in inflation within the region.

Key Drivers Behind the Increase

Services have been identified as the primary factor contributing to this uptick, with an annual inflation rate projection of 4.0%. Following closely are food, alcohol, and tobacco at 2.7%, non-energy industrial goods at 0.5%, and energy at a modest 0.1%.

Month-on-Month and Core Index Insights

On a month-to-month basis, the inflation rate is anticipated to hit 0.4%. Additionally, the core inflation index, which excludes energy, food, alcohol, and tobacco, is projected to rise by 0.5% compared to the previous month and by 2.7% year-on-year.