The Central European Bank upped eurozone interest rates in December

The single biggest driver behind inflation was higher gas prices, said the EU statistic's agency Eurostat.

December's stable inflation figure - including core inflation of 1.5% - came after inflation had soared to 2.5% in May and June last year.

The European Central Bank raised interest rates to 3.5% last month and has not ruled out further increases.

New member

The December figure is just shy of the Central Bank's guideline figure of 2%, which had been exceeded last summer.

As well as natural gas prices, the cost of vegatables and prices in restaurants, and cafes also rose. The most dramatic year-on-year drop was seen for transport fuel and telecom prices.

The core inflation figure of 1.5% excludes food, energy and alcohol and tobacco.

Finland had the lowest rate of inflation - at 1.2% for the year, while Greece had the highest at 3.2%. Meanwhile, inflation in Germany - the region's largest economy - came in at an annual rate of 1.4%.

When the next set of inflation figures are published in February, Slovenia - which joined the Euro in January - will be included in the calculations.