According to the official report published on Friday inflation in the Euro area fell matching with the forecasts.

Published Eurostat data also showed that consumer prices in December increased by 1.4% YoY, compared to 1.5% gain in November last year.

The inflation rate was in line with the forecasts of analysts, but it remains below the ECB’s target of 2%, which was another argument in support of the ECB’s position on a gradual increase in the interest rate.

Core inflation, which does not take into account energy and food prices showed an increase of 0.9% on an annualized basis, remaining unchanged from the previous month. Analysts had expected basic inflation to grow by 1.0%.

The Eurozone producer price index rose 0.6% in November against growth forecasts of 0.3% and after growth of 0.4% in October. Compared to the same period last year, the producer price index in November rose by 2.8% after growing by 2.5% in October. Analysts had expected that in November this figure would remain at the level of 2.5%.

After the report, the pair EUR/USD went upside to 1.2052 compared with the level of 1.2044 before the report.

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