Taxa de inflação na zona euro aumenta em dezembro

Inflation rate in the euro area increases in December

After a downward cycle for seven months, the inflation rate in the Eurozone is now increasing again in December, according to Eurostat data. Understand what is at stake and how to ensure greater budget stability, in the face of the instability of the current economic situation.

12 Jan 20243 min

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Need help with your credit and/or insurance portfolio? Talk to us, we will solve your problems right away! Contact the credit intermediaries and insurance brokers at Poupança no Minuto. But first, get to know the data disclosed and how to stabilize your income.

Eurozone inflation rate increases from 2.4% to 2.9%  

The year-on-year inflation rate in the eurozone increased in December, rising from 2.4% to 2.9%.  

This information is disclosed by Eurostat, shared by Notícias ao Minuto, and now interrupts the downward trend that had been occurring in the last seven months.

However, Eurostat predicts a slowing down in the core inflation rate - which reflects the calculation of price evolution without taking into account the most volatile elements - to 3.4%, 0.2 percentage points less than in November 2023.  

Note, however, that the difference compared to December 2022 is significant. At that time, the year-on-year inflation rate in the euro area was 9.2%.  

"Considering the main components of the indicator, the food, alcohol, and tobacco sector recorded, according to estimates, the highest inflation rate (6.1%, compared to 6.9% in November), followed by services (stable at 4.0%), non-energy industrial goods (2.5%, against 2.9% in November), and energy (-6.7%, compared to -11.5% in November)", as reported by Notícias ao Minuto news.

Among the 20 eurozone countries, accelerations occurred in nine countries (Germany, France, Greece, Ireland, Belgium, Luxembourg, Austria, Finland, and Estonia), while in Spain the rate remained stable. The estimate, measured by the Harmonized Index of Consumer Prices (HICP), concludes that, of the 20 countries, the highest inflation rates belong to Slovakia (6.6%), Austria (5.7%), and Croatia (5.4%). In contrast, the lowest rates are estimated in Belgium and Italy (0.5%), Latvia (0.9%), and the Netherlands (1.0%).

These data goes against the figures shown in Portugal in December, marked by the 1.4% year-on-year inflation rate, being the fifth lowest among eurozone countries. 

Inflation variations: How to ensure stability in the budget?

With uncertainty still looming over inflation and interest rates, how to ensure greater stability in your budget?

If you have a mortgage indexed to Euribor, and subject to its variations, the answer to this question is simple - fix your current rate.  

This means that since the monthly amount you pay is dependent on the Euribor rates - which in turn depend on the value of the benchmark interest rates - by changing the type of your credit to a mixed or fixed interest rate, this variation ends.  

With one of the mentioned schemes, you gain access to greater stability, as you always pay the same tax rate, even though in the mixed rate it's only in the first phase, for a period of time that you choose.  

However, since Euribor rates are close to 4%, on the other hand, there are campaigns for mixed rates at banks starting at 2%, if you fix the rate for one year.  

To access these campaigns, you can renegotiate your conditions with your current bank, or transfer the credit to a different bank (since these campaigns are more commonly allowed for new mortgages).  

Want to know more about these options? Contact the credit intermediaries of Poupança no Minuto, who, with a completely free service, help you throughout the process from day 1!

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