Euro region inflation slows

INFLATION in the euro region slowed in December as its appreciation reduced the cost of imports and stagnant consumer spending deterred shops from raising prices.

Consumer prices climbed 2.1% from a year ago, down from 2.2% in November, the Luxembourg-based European statistics office said in a preliminary estimate. The rate matched the median forecast of 13 economists surveyed by Bloomberg News.

Christophe Dehondt, who helps manage a $423 million fund of inflation-linked bonds at CPR Asset Management in Paris said: “We haven’t felt the rise in oil prices in Europe thanks to the euro’s appreciation. This will give some room to manoeuvre for the European Central Bank.”