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MNI BRIEF: Eurozone Inflation Edges Higher, But Below Expected

(MNI) London

Eurozone headline inflation edged higher in December, as expected by the European Central Bank and analysts, although the final print was lower than the market consensus. Inflation rose to 2.9% y/y from 2.4% in November, according to Eurostat, largely a reflection of base effects as German energy price protection measures from late 2022 rolled out of the equation.

Core inflation continued to decelerate, rising 3.4% y/y in December, down from 3.6% previously.

Overall, the data will do little to shift market expectations of sustained rate cuts by the ECB throughout 2024, but the blip higher will likely give the central bank a strong enough shield to push back against hikes at both the January and March meetings, even if talk of cuts may be gathering pace by then amongst some policymakers. (MNI INTERVIEW: ECB Could Discuss Cut Timing In January-Centeno)

Source: Eurostat

MNI London Bureau | +44 203-865-3812 |
MNI London Bureau | +44 203-865-3812 |

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