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Euro Area Inflation December 2022

ended 06. January 2023

The euro area flash estimate inflation numbers for December 2022 will be published on Friday the 6th at 10.00 am.

In November 2022, inflation in the euro area was 10.1% year-on-year. The rate dropped 0.5% from October's record high of 10.6%, but remained above the ECB's target of 2.0%, indicating that the ECB may be forced to raise rates.

Here are the questions journalists will be looking to have answered:

  • What are your expectations for EU inflation in 2023?
  • What action should EU policymakers be taking to tackle inflation?
  • What impact (if any) does euro inflation have on the UK economy

Answer one or all of the above questions now. Keep it short and to the point, at most 175 words, and we'll make sure your comments reach the media first thing on the release of the figures.

4 responses from the Newspage community

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Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
Just like here in the UK and across the pond, 2023 will have much higher inflation than target, but it will drop back significantly after April when most of the energy price increases were felt following the war in Ukraine. Those higher energy costs have filtered through into everything else, so it will take a further 12 months for this inflation to fall out of the figures but as demand is so weak and a recession is now in full swing, I expect 3-4% to be the norm in 2023.
If the EU want to reduce inflation it could do two things: support Ukraine further in its just fight against a tyrannical Putin and massively invest in renewals and nuclear. Simply hiking up rates is not going to combat inflation if it's not created from demand, and its not. Still our biggest trading partner, if we import EU goods at a higher price, our prices rise.
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Karen Green
UK food retail expert at Food Mentor
The EU inflation continues to run behind the UK and the cost of borrowing money is also cheaper. Does this ongoing discrepancy in cost of living and quality of life (I live in France and the healthcare system is way better!) drive more people overseas as countries such as Spain make it easier to be an ex pat? Karen Green, Food Mentor, I have worked in France for 7 years and cost of property, mortgages and ease of doing business online has meant I can run my consultancy business remotely and successfully.
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Fayaz Patel
Founder at Treasury First
Inflation is a global issue and reduced economic activity in the euro zone is a threat to the UK economy. With the high inflation in Europe, we are seeing an appreciation of the euro relative to other currencies, including the pound sterling. This is making UK exports more expensive in the euro area and imports from the euro area cheaper in the UK, potentially affecting the balance of trade between the two regions.
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Dimos Andronoudis
Senior Economist at Fathom Financial Consulting
Euro area inflation would ease further in December. German import prices dropped dramatically, with the falling oil prices and the strengthening euro having a lot to do with it. This is not unique to Germany, but to all countries in the block. However, the ECB’s task would not be any easier in 2023. Although import inflation is easing, the opening-up of China means more demand from a huge market that goes out to consume now. Add this to the other challenges (the Russo-Ukrainian conflict, political polarizations, immigration, peripheral countries, slow decision/implementation), and I cannot see inflation dropping below 7.5% in 2023. The ECB would have to maintain a hawkish stance, especially when the Fed is not backing down (you do not want euro to lose much ground against dollar again). The ECB would hike to a peak of around 3.5% in 2023.