Eurozone inflation unexpectedly increased in December

According to Eurostat, inflation in the 20 countries of the Eurozone increased by 0.2% m-mo to 2.4%. Prices of unstable food and energy remained stable at 2.7% compared to the previous period, while services inflation increased to 4.0%. This growth was mainly driven by higher energy and services costs.

Unemployment rate in the region remained stable at an all-time low of 6.3% in November. However, there has been a marked slowdown in the pace of new hiring, with labor market surveys suggesting a slowdown in recent months.

The European Central Bank (ECB)'s survey showed that the inflation expectation for 3 years ahead is expected to be 2.4%, which is considerably higher than the previous survey result and targets. ECB governing council members reported that inflation is under control and close to target levels despite high energy costs.