Euro zone inflation slowed for the third month running in December, data showed today.
However, economists still expect the European Central Bank will raise interest rates in March as economic growth picks up.
EU statistics agency Eurostat estimated consumer price growth at an annual 2.2 per cent in the 12 countries using the euro, in line with the consensus among economists and down from 2.3 per cent in November.
While some economists argue inflation may only fall below the ECB's target of 2 per cent in the second half of 2006, most predict that the central bank will raise interest rates twice more this year, maybe in March and June.
ECB Governing Council member Vitor Constancio today stuck to the ECB line that the bank had not yet decided if it would need to raise rates again to cut inflation. But he said recent indicators pointed to stronger economic growth.