Inflation in the euro area, as measured by the Harmonised Index of Consumer Prices (HICP), declined to 9.2% on a yearly basis in December from 10.1% in November, Eurostat announced on Friday. This reading came in below the market expectation of 9.7%.

The annual Core HICP rose to 5.2% from 5%, surpassing analysts' estimate of 5%. On a monthly basis, the HICP declined by 0.3% but the core HICP was up 0.6%.

Market reaction

EUR/USD edged slightly higher with the initial reaction to inflation figures and was last seen trading at 1.0515, where it was down 0.05% on a daily basis.