Consumer Prices Remain Stable in December 2024, Inflation Up 1.3%

According to provisional estimates released at the end of December 2024, consumer prices have increased by 1.3% year-on-year, maintaining the same rate as in November. This slight uptick in overall inflation is due to a small rebound in energy prices, balanced out by a greater-than-expected decline in manufactured product prices compared to November. Meanwhile, food prices saw a notable slowdown, stabilizing at the same level as the previous month. The prices of services and tobacco remained relatively unchanged, with the rates evolving similarly to those of November.

Consumer Prices Remain Stable in December 2024, Inflation Up 1.3%

Month-on-month, consumer prices experienced a modest increase of 0.2% in December 2024, reversing the slight decrease of -0.1% recorded in November. This rise was primarily due to higher prices for services, especially transport, and, to a lesser extent, by a slight increase in energy prices, particularly for petroleum products. On the other hand, prices for manufactured goods fell compared to the previous month, while prices for food and tobacco remained stable, showing little to no change.

The harmonized consumer price index (HICP), which is often used for comparison across EU countries, rose by 1.8% year-on-year in December 2024, up from 1.7% in November. Month-on-month, the HICP also increased by 0.2%, following a -0.1% decrease in the previous month.

The overall stability in prices, despite the rise in certain sectors like services and energy, indicates a balanced inflationary environment as the year draws to a close, with a mixed outlook for consumer price trends in early 2025.

The slight rebound in energy prices and the stability in food prices helped offset the larger decline in manufactured product prices. While services, particularly transport, saw price increases, overall inflation remained controlled. The rise in the harmonized consumer price index indicates that inflation is gradually stabilizing, with no significant shifts expected in the near term. This stability offers a balanced outlook for consumers as they enter 2025, with inflationary pressures unlikely to dramatically alter spending patterns in the short term.

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