Meanwhile the ECB's survey of 19,000 euro area consumers showed a similar uptick in expectations last month. Median expectations for inflation over the next 12 months increased for the third month in a row, to 2.8% from 2.6%. However, three years out, expectations were unchanged at 2.4%.

Euro zone manufacturers are more worried about cheap imports from China than tariffs from the United States, a European Central Bank survey showed on Friday.

Banks in the euro area tightened credit standards for companies by the most since 2023, according to the European Central Bank — dashing hopes for a quick recovery in corporate lending that could support investment.

FRANKFURT (Reuters) - Lending growth to businesses in the 20-nation euro zone accelerated in December, suggesting that a string of interest rate hikes have started to transmit through to the real economy, European Central Bank data showed on Tuesday.

Euro zone banks tightened firms' access to credit last quarter and expect further tightening in the first three months of 2025, a European Central Bank survey showed on Tuesday, reinforcing the case for more interest rate cuts as the economy slows.