Euro-Area Inflation Slows to ECB Goal, Backing Steady Rates

Euro-area inflation eased to the European Central Bank’s target, supporting the view of policymakers that interest rates can stay at current levels unless the economic outlook changes significantly.

Consumer prices rose 2% from a year ago in December, down from 2.1% in the previous month and matching economists’ estimates. Core inflation, which strips out volatile food and energy costs, slowed to 2.3%, while closely-watched services inflation also eased.