Eurostat reports that the annual inflation rate in the euro zone rose to 2.4% in December, marking a third consecutive month of increase. The reading aligns with economists' predictions and surpasses the revised 2.2% rate from November.
Annual inflation in the euro zone rose for a third consecutive 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. In December, inflation in France meanwhile came in at 1.8% last month, below a Reuters analyst poll forecasting a 1.9% print. 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 in Europe is much more predictable than say, the U.K.,' Bathgate said Tuesday
INFLATION EUROZONE ECONOMY EUROPEAN CENTRAL BANK INTEREST RATES
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