Eurozone Inflation Hits ECB Target at 2% in December, Easing Pressure

• Eurozone inflation eased to 2% in December from 2.1% in November, meeting the European Central Bank's medium-term target.
• The moderation in headline inflation was largely driven by softer energy prices, offsetting persistent increases in food costs.
• Core inflation, which excludes volatile components like food and energy, also dipped to 2.3% from 2.4%, indicating broader normalization.
• The data reinforces the ECB's assessment that inflation is on a sustainable path towards price stability.
• Despite improving outlook, the ECB kept its deposit rate unchanged at 2% in December, signaling continued caution on policy shifts.

Why It Matters: Eurozone inflation hits ECB's 2% target, but central bank remains cautious on policy changes.