Euro zone inflation practically at target, ECB's Nagel says

FRANKFURT, Dec 2 (Reuters) - Inflation in the euro zone is practically at the European Central Bank's 2% target and will fluctuate around it despite a tariff-induced price rise in the United States, ECB policymaker Joachim Nagel said in an interview published on Tuesday.

Inflation in the 20 nations sharing the euro accelerated to 2.2% last month from 2.1% in October, a small rise that is unlikely to be too concerning for an ECB that was anyway set to keep interest rates on hold this month.

"We have practically achieved (our goal), and the inflation rate will continue to fluctuate around this value in the near future," Nagel, who heads the Bundesbank, told German magazine Stern.

Nagel played down the significance for the ECB of a rise in U.S. inflation, which he said was caused by import tariffs and could get worse if the Federal Reserve cut interest rates.

Asked about Germany's economic prospects, Nagel said fiscal spending on the military and infrastructure could push growth above 1% in 2027, but the country needed to tackle its structural issues, such as a shrinking working-age population.

(Reporting by Francesco Canepa; Editing by Andrew HeavensEditing by Ros Russell and Andrew Heavens)

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