Euro area HICP inflation rose +0.2% MoM in December 2025 (down from 0.4% MoM in December 2024) and eased to 2.0% YoY (from 2.1% in November), pointing to modest month-end price firming amid softer annual momentum.

• Core inflation increased +0.3% MoM and eased slightly to 2.3% YoY (vs 2.4% YoY expected), down from 2.4% YoY in November, indicating a mild cooling in underlying price pressures.

• Services inflation decelerated to 3.4% YoY (Nov: 3.5%) and rose +0.7% MoM, remaining the strongest component and a key source of persistence in overall inflation.

• Energy prices fell -0.8% MoM and declined -1.9% YoY (Nov: -0.5% YoY), deepening the annual contraction and continuing to weigh on the headline rate.

• Food, alcohol and tobacco inflation edged up to 2.6% YoY (Nov: 2.4%) with a +0.1% MoM increase, reflecting firmer food price dynamics late in the year.

• Unprocessed food inflation rose sharply to 4.2% YoY (Nov: 3.2%) and increased +0.8% MoM, standing out as a key upside contributor among goods.

• Processed food inflation eased to 2.1% YoY (Nov: 2.2%) and fell -0.2% MoM, showing continued moderation in this category.

• Non-energy industrial goods prices declined -0.3% MoM and slowed to 0.4% YoY (Nov: 0.5%), remaining a subdued component of overall inflation.