The annual inflation rate in the eurozone is expected to reach 2.4% in December 2024, up slightly from 2.2% in November 2024, according to estimates released by Eurostat. This increase reflects changes in the key components influencing the region’s inflation.
Breakdown by Components
Among the main contributors to inflation, services lead with an estimated annual rate of 4.0% in December, compared to 3.9% in November. This component accounts for 44.9% of household final consumption expenditure in the eurozone, making it the most significant contributor.
Other key components include:
- Food, alcohol, and tobacco: Stable at 2.7% compared to November.
- Non-energy industrial goods: A slight decrease to 0.5% from 0.6% in November.
- Energy: A significant change, rising from -2.0% in November to a modest growth of 0.1% in December.
Contribution by Components
In terms of weights for 2024, services account for 44.9% of household spending, followed by non-energy industrial goods (25.7%), food, alcohol, and tobacco (19.5%), and energy (9.9%). Although food and energy have smaller weights, their volatility can have a notable impact on overall inflation.
Source: EUROSTAT