Euro zone inflation rose to 2.4% in December, meeting expectations

Annual inflation in the euro zone rose for a third straight month to reach 2.4% in December, statistics agency eurostat said tuesday.

The preliminary reading was in line with the forecast of economists polled by reates and marked an increase from a revised 2.2% print in NovemberCore Inflation Held at 2.7% for a fourth straight month, also meeting Economists’ Expectations, While Services Inflation Nudged Up to 4% from 3.9%.

Headline inflation was widely expected to accept after The full extent of increase in the reading – ALONG with Persistence in Services and Core Inflation – will be closed by the European Central Bank, which markets currently expertly expert to cuts OSS Several Trims This year.

The pace of price rises in the Euro Zone’s Larget Economy, Germany, Hit a higher-tha-expected 2.8% In December, according to Figures published separated this week. Inflation in france meaning meaning in at 1.8% last month, below a reuters analyst poll Forecasting a 1.9% print.

The euro Held Early-Morning Gains Against The Us Dollar Following The Print, Trading 0.33% Higher at $ 1.0424 at 10:43 AM in London. Traders are Assessing Whether the Euro could decline to paraity with the greenback this year, if the US federal reserve proves Significantly more Hawkish Than the ECB,

Haig Bathgate, Director of Callanish Capital, Told CNBC’s “Squawk Box Europe” That ECB PolicyMakers would not be overly concerned by a hotter mon Ith expectations.

“There’s now a lot more predictability in a lot of the data series we’re

While Markets Have Frontload Pricing for Rate Cuts Toward The Year, Jack Allen-Reynolds, Deputy CHEF EURO Zone Economist at Capital Economics, Said the Sticks of Services Infration means y to keep cutting interes rates only slowly even As the Economic Outlook Remains Poor. “

“Most Important for the Monetary Policy Outlook is that core inflation was unchanged at 2.7% for the fourth culture month … This won stop the eCB from cutting interesting interest rates furthe,” Alleen-Aryn-Aryn-ARYYNOLDS SAIDES SAIDES SAIDES

“The high level of services inflation is partly due to temporary effects that should fade fade this year. Meanwhile, the labor market has loosented, wage growth is slowing and the growth outs

The Euro Zone Economy Grew by 0.4% in the Third QuarterBut economists warn that political instabilityOngoing Manufacturing Weakness and the Potential for Escalating Trade Tensions Under the Incoming Administration of Us President-Elect Donald Trump has clouded the outlook for 2025.

CORRECTION: This article has been updated to reflect that German Statistics Agency Destatis corrected its year year-on-yar harmonized inflation figure to 2.8% in December.