Euro zone inflation is expected to drop to 2.8% in December, its first fall in four months but still above the level favoured by the European Central Bank for price stability, official figures showed today.
Eurostat, the European Union's statistical agency, said it estimated annual inflation in the 17-nation euro zone at 2.8%, compared to 3% in November.
Inflation in the euro nations hit 3% in September, up from 2.5% in August, and remained stable through October and November.
The December estimate, if confirmed, will mark the 13th consecutive month that inflation has remained above the ECB's target for price stability of below or close to 2%.
In France, the government this week forecast a slowdown in price hikes in 2012 to 1.5% against 2.4% in 2011. In Germany, inflation hit a high of 2.6% in September before declining. In Spain, annual inflation fell to 2.4% in December compared to 2.9% the previous month.
The December estimate for the entire euro zone could reassure the ECB, which next meets January 12. The central bank lowered its main interest rate in November and in December by 0.25% each time, to an historic low of 1%.
Eurostat will release its final inflation figure for December on January 17.
