Inflation reaches target in the Eurozone as unemployment rate ticks down

Eurozone inflation fell to 2.0% in December, returning to the European Central Bank’s target. Core inflation, which strips out volatile food and energy prices, eased to 2.3% in December, down from 2.4% in November.

Meanwhile, data on the Eurozone labour market show that the unemployment rate inched down 0.1 percentage points to 6.3% in November.

The benchmark interest rate was held following a meeting in December of the Eurozone’s monetary authority.

With the inflation rate at target, we expect the ECB to continue holding off on rate cuts for the time being.