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

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


A man rides bicycle on a snow-covered street after snowfall in Frankfurt am Main, western Germany, on December 29, 2024. 

Kirill Kudryavtsev | Afp | Getty Images

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

The reading was in line with the forecast of economists polled by Reuters and marked an increase from a revised 2.2% print in November. Core 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 accelerate after hitting a low of 1.7% in September, as base effects from lower energy prices fade. The full extent of increases in the reading — along with persistence in services and core inflation — will be closely watched by the European Central Bank, which markets currently expect to cut interest rates from 3% to 2% across several trims this year.

chart visualization

The pace of price rises in the euro zone’s largest economy, Germany, hit a higher-than-expected 2.9% in December, according to figures published separately this week. Inflation in France meanwhile came in at 1.8% last month, below a Reuters analyst poll forecasting a 1.9% print.

The euro extended early-morning gains against the U.S. dollar following the print, trading 0.37% higher at $1.0428 at 10:13 a.m. in London. Traders are assessing whether the euro could decline to parity with the greenback this year, if the U.S. 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 monthly inflation reading, as long as it was broadly in line with expectations.

“There’s now a lot more predictability in a lot of the data series we’re seeing… the direction of travel of rates [lower] in Europe is much more predictable than say, the U.K.,” Bathgate said Tuesday.

This is a breaking news story and will be updated shortly.



Source

In 1991, he moved to the U.S. and delivered pizza for .25 an hour. Now, he owns over 270 pizza restaurants
World

In 1991, he moved to the U.S. and delivered pizza for $4.25 an hour. Now, he owns over 270 pizza restaurants

Nadeem Bajwa, 58, is the co-founder and CEO of Bajco Group. Courtesy of Nadeem Bajwa In 1991, Nadeem Bajwa immigrated to the United States from Pakistan. While attending college in Indiana, he worked a few jobs, including delivering pizza for restaurant chain Papa John’s, where he made $4.25 an hour. Today, the 58-year-old has a […]

Read More
Asia-Pacific markets mostly fall after Wall Street gains overnight
World

Asia-Pacific markets mostly fall after Wall Street gains overnight

Bombay Gate Gateway of India, Mumbai Arutthaphon Poolsawasd | Moment | Getty Images Asia-Pacific markets mostly fell on Wednesday after Wall Street gained overnight. India’s markets will also be in focus as the U.S. tariffs take effect. The country currently faces additional tariffs of up to 50% on exports to the U.S., after the Trump […]

Read More
OpenAI says it plans ChatGPT changes after lawsuit blamed chatbot for teen’s suicide
World

OpenAI says it plans ChatGPT changes after lawsuit blamed chatbot for teen’s suicide

OpenAI CEO Sam Altman speaks during the Federal Reserve’s Integrated Review of the Capital Framework for Large Banks Conference in Washington, D.C., U.S., July 22, 2025. Ken Cedeno | Reuters OpenAI is detailing its plans to address ChatGPT’s shortcomings when handling “sensitive situations”following a lawsuit from a family who blamed the chatbot for their teenage […]

Read More