FXstreet.com (Barcelona) - Consumer prices have moderated in the Euro Area in September,, and the yearly growing pace has fallen to levels within the ECB's margin for price stability for the first time since August 2007, as the latest report by Eurostat shows.

As previously forecasted, inflation at consumer level has posted a negative growth in December, for second consecutive time, prices have edged down 0.1% on the month, following a 0.5% decline in November.

Annual inflation has grown at a 1.6% pace in December, falling to levels within the ECB's established margin for price stability, that is, below the 2% annual rate, last time prices grew at a slower than 2% pace in the Euro Area was in August 2007. In December 2007, prices grew at a 3.1% annual rate.

The highest annual inflationary contributors have been housing, 3.6% up year on year, alcohol and tobacco, 3.5% up and hotels and restaurants, 3.3% up, while on the other side, prices for transport fell 2.5% and communication prices dropped 1.8% year on year. Excluding food and energy, consumer prices grew 1.8% year on year.

These figures come to support the ECB's policy towards lower interest rates as inflationary pressures have eased sharply in the Euro Area in the last seven months.