MNI BRIEF: Eurozone December Inflation Higher, Core Unchanged
MNI (LONDON) - Euro area inflation rose again in December, the data from Eurostat showed, but it was at the lower end of economists' expectations.
The headline inflation number rose to a preliminary 2.4% year-on-year, up from 2.2% in November. Core inflation rose 2.7% y/y, unchanged on the level last month.
Although the rise in the headline number was the third consecutive uptick from September's 3-year low at 1.7% -- ECB policymakers are confident the 2% target rate will be hit in a "sustainable manner" from some point in 2025. (See MNI ECB WATCH: ECB Cuts 25BP, Drops Restrictive Language )
Earlier on Tuesday, an ECB survey showed inflation expectations creeping higher, but policymakers are likley to look through the uptick. (see MNI BRIEF: Euro Area Consumer Inflation Expectations Edge Up )