Eurozone Inflation Falls to 2% by the End of 2025

Eurozone inflation recorded a noticeable slowdown in December, easing to 2% year on year, matching the European Central Bank’s medium-term target.

Preliminary figures released by Eurostat showed that Eurozone inflation declined from 2.1% in November to 2% in December, signaling easing price pressures on consumers.

This return to the official target level strengthens expectations of monetary stability across the euro area.

At the same time, core inflation – which excludes energy and food – edged down to 2.3% from 2.4% a month earlier, a key indicator for long-term price trends.

These developments are expected to reinforce forecasts that the European Central Bank will keep interest rates unchanged at its upcoming February meeting, as policymakers continue to monitor Eurozone inflation closely.

The ECB has maintained its main interest rate at 2% since June, and economists anticipate that 2026 may see broadly stable monetary policy without major shifts.