FX.co ★ Euro Zone CPI ex Tobacco Sees Decline in December, Drops to 1.9%

In a notable shift, the Euro Zone's Core Consumer Price Index (CPI) excluding tobacco for December 2025 has recorded a decrease, settling at 1.9% compared to the previous month's 2.1%. This change, which reflects price movements from a year-over-year perspective, was officially updated as of 19 January 2026. This dip indicates a cooling off in inflationary pressures across the region, marking a significant point for economic analysts and policymakers looking to understand underlying price trends.

The current indicator suggests that inflation, excluding volatile tobacco prices, is easing, contrasting with the November 2025 figure that had economists preparing for potential tightening of monetary policies. This downward tick could signal changing dynamics within the Euro Zone's economy, possibly providing relief to consumers and businesses grappling with cost pressures.

As the year progresses, financial markets and central bankers will be closely monitoring such trends to gauge future policy directions. A continued trajectory in this direction might influence broader European Central Bank strategies, particularly in balancing growth and inflation targets amidst dynamic global economic conditions.