According to a flash estimate from Eurostat, euro area annual inflation is expected to be -0.3% in December 2020, stable compared to November. The core figures came in at 0.2% in the reported month when compared to 0.2% expectations and 0.2% seen in November.

Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in December (1.4%, compared with 1.9% in November), followed by services (0.7%, compared with 0.6% in November), non-energy industrial goods (-0.5%, compared with -0.3% in November) and energy (-6.9%, compared with -8.3% in November).