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Inflation fell to 2.8% in euro area

February 14 category:Economy
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Inflation fell to 2.8% in euro area

A two-euro coin.

REUTERS / Tony Gentile

Inflation fell slightly in December in the euro area to 2.8% after 3% over the previous three months, according to preliminary estimates Wednesday the European statistics office Eurostat. This is in line with expectations of analysts polled by Dow Jones Newswire reported. It is higher for the 13th consecutive month the threshold of 2% target over the medium term by the European Central Bank (ECB).

But the slowdown in inflation in December seems to go in the direction pointed by most economists who believe that the level of inflation in the euro area is expected to fall around 2% in 2012. In France, the Secretary of State for Consumer Frederic Lefebvre, said Monday that the price increase is expected to slow in 2012, falling to 1.5%, against 2.4% in 2011.

In Germany, inflation peaked in September to 2.6%, before beginning a decline in parallel with the economic downturn. And Spain, the rate of inflation fell again in December to 2.4% year on year, against 2.9% in November, reaching its lowest level since November 2010.

The December figure for the whole of the eurozone could in any case help reassure the ECB, whose next meeting will take place on 12 January. Faced with economic threats, the Frankfurt institution had lowered in November and December its key rate by 0.25 percentage points each time, bringing him back to a historic low of 1%. It should continue to do so in 2012, according to observers. Eurostat will release its final estimate of inflation for December on 17 January.

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