Euro zone inflation slipped to two per cent in December, nearing the European Central Bank's comfort zone just as calls have been made for more rate cuts to combat a rising euro.
European Union statistics agency Eurostat said in a statement today that the December annual rate was revised down from its original estimate for the month of 2.1 per cent. The November rate was 2.2 per cent.
The December month-on-month gain was 0.3 per cent. Analysts had expected a monthly rise of 0.4 per cent and for the annual figure to be in line with Eurostat's original forecast.
The core rate of inflation referred to by the ECB, which excludes volatile energy and unprocessed food costs, was 1.9 per cent year-on-year compared with two per cent in November, and 0.4 per cent month-on-month after 0.1 per cent.
The ECB has faced calls from some for a cut in interest rates, including German Economy Minister Wolfgang Clement, to deal with a steadily rising euro. They have been at a low of 2 per cent since June.
Inflation in the top three euro zone states was 1.1 per cent for Germany, 2.4 per cent for France and 2.5 per cent for Italy.
Ireland's rate is running at 1.9 per cent.