Eurozone Sees Drop In December Inflation Rate

The eurozone saw a slightly larger than expected drop in the December inflation rate, down to 2.7 percent.

Eurostat, the European Union’s statistics office, predicted the December rate would drop to 2.8 percent from November’s rate of 3 percent for the 17 eurozone member nations.

The Eurozone Central Bank has a target of less than 2 percent inflation. The ECB maintained its benchmark interest rate at just 1 percent.

Meanwhile, Germany’s investor confidence rose in January, suggesting the German economy remains strong and economic activity should stabilize in the first half of 2012.

Britain – which is not a part of the eurozone – had it’s rate of inflation fall in December by the largest margin since 2009. Economic statistics released Tuesday indicated a drop from November’s 4.8 percent down to 4.2 percent.