Eurozone inflation held mostly steady at the close of 2025, according to figures published by Eurostat. The Harmonized Index of Consumer Prices (HICP) was up 2.0% year-on-year in December, as expected by the market. This figure is a partial reversal from November’s 2.1%, reflecting a continued cooling in price pressures throughout the region.
Core inflation in the Eurozone experienced a significant monthly increase of 0.3%, undoing last month’s -0.5% decline. While overall inflation is still up—much due to increased shelter costs—the nature of this unexpected rebound indicates possible stabilization in the underlying price trends. Heightened inflation The stagnant inflation numbers show that the interplaying economic forces, from energy costs to consumer spending, are still very much affecting our economy.
Germany’s inflation data added to the Eurozone-wide picture, showing a clearer and deeper cooling of price pressures. In December, Germany’s national Consumer Price Index (CPI) jumped 1.8% over the same month last year. That represents a troubling drop from November’s 2.3% jump. Interestingly, the monthly CPI reading was flat at 0%, signaling a pause in short-term price increases.
The Eurozone’s Core HICP came in year-on-year at 2.3%, just under the consensus of 2.4%. This preferred core measure strips out volatile items such as food and energy. While this is down from the prior reading of 2.4%, a sign that inflation appears to be stabilizing, underlying pressures still persist.
Headline inflation in the Eurozone rose by 0.2% in October. This increase is a sign that, even if the yearly numbers seem steady on the surface, more recent trends continue to operate and should raise alarm and concern. The data provides a mixed outlook as central banks consider their monetary policy strategies in response to evolving economic conditions.
The stability seen at the end of 2025 is critical for policymakers as they navigate challenges posed by fluctuating energy prices and shifting consumer behavior. Analysts will be watching closely how these inflation figures influence decisions by the European Central Bank and other financial institutions in the months ahead.