Euro Inflation Likely Stalled Above ECB's 2% Target

Euro Inflation Likely Stalled Above ECB's 2% Target

Inflation across the euro zone in December lingered above the European Central Bank's target of keeping the annual rate of prices rises "just below" 2 percent, figures from the Eurostat may show Wednesday.

The ECB kept interest rates at an all-time low of 0.75 percent last week amid lack of solid evidence that the eurozone is slipping further into recession and as inflation remains above its target in 2012.

ECB President offered not hints of future rate cuts, as the Governing Council affirmed that the decision to leave rates unchanged last month was "unanimous", driving the single currency above the $1.32 mark.

The euro eased slightly from an eight-month high, down at $1.3284 against its U.S. counterpart by 07:19 GMT on Wednesday. The pair kicked off the day at $1.3304, recording a session high of $1.3316 and low of $1.3277.

Inflation may remain steady at the end of the 2012, while cost of living in the euro area probably rose 2.2 percent in December, the same rate as in November – still above the ECB's target threshold of 2 percent.