site.btaEuro Area Annual Inflation Down to 2.0% in December 2025

Euro area annual inflation is expected to be 2.0% in December 2025, down from 2.1% in November according to a flash estimate from Eurostat, the statistical office of the European Union.

The same rate of 2.0% was last reported in August 2025.

Among individual euro area countries, December 2025 annual inflation is expected to be highest in Estonia and Slovakia (4.1% in both countries), Austria (3.9%) and Croatia (3.8%), and lowest in Cyprus (0.1%), France (0.7%) and Italy (1.2%).

Looking at the main components of euro area inflation, services is expected to have the highest annual rate in December (3.4%, compared with 3.5% in November), followed by food, alcohol & tobacco (2.6%, compared with 2.4% in November), non-energy industrial goods (0.4%, compared with 0.5% in November) and energy (-1.9%, compared with -0.5% in November).

Monthly inflation in the euro area in December 2025 is estimated at 0.2%.

As of February 4, 2026, several methodological changes will take effect in the harmonized index of consumer prices (HICP), Eurostat says. The index will be compiled according to the new European Classification of Individual Consumption According to Purpose version 2, aligned with the UN COICOP 2018 classification. Games of chance will be included in the HICP as part of Recreation services under the division of Recreation, sport and culture. The index reference period will also be updated to 2025=100.