[Germany's Inflation Unexpectedly Drops to 2% Threshold, ECB Likely to Keep Rates 'On Hold'] Jin10 Data, January 6 – Germany's inflation slowed more than expected at the end of last year, which does not provide sufficient reason for the European Central Bank to alter its current policy path. The German Federal Statistical Office stated on Tuesday that after a 2.6% increase last month, the Consumer Price Index rose 2% year-on-year in December. The median forecast from surveys was 2.2%. Earlier today, France's report and last week's data from Spain also showed easing price pressures. Eurozone data will be released on Wednesday, with economists predicting the inflation rate to be at the 2% target level. Policymakers have expressed confidence that inflation is back under control. Although the ECB's latest forecast indicates that price increases this year and next will fall below the target level, the extent of this shortfall is minimal—persistent inflation in the services sector remains a concern. Executive Board member Schnabel stated that unless any shocks occur, borrowing costs 'are likely to remain stable for quite a long time.'