Eurozone Inflation Falls to 2 Percent, Hitting European Central Bank Target

Falling energy prices pulled eurozone inflation down to the ECB’s 2 percent target, even as services costs stayed elevated.

A giant Euro symbol at the European Central Bank headquarters in Frankfurt, Germany, on Nov. 6, 2024. Kirill Kudryavtsev/AFP/Getty Images

Eurozone inflation fell to the European Central Bank’s 2 percent target in December 2025, offering fresh evidence that price pressures are cooling across the bloc after years of volatility.

Annual inflation in the 20-country euro area slowed to 2 percent in December from 2.1 percent in November, according to a flash estimate published on Jan. 7 by Eurostat, the European Union’s statistics agency.