Eurozone: Core inflation prints 1% in December – Nordea Markets
Tuuli Koivu, analyst at Nordea Markets, explains that in line with consensus, Eurozone’s core inflation printed 1.0% y/y in December, while headline inflation dropped to 1.6% due to the decline in oil prices.
“The short-term outlook for core inflation remains sluggish. The monthly changes in the services prices did not indicate any upward trend but continued the recent path of modest development.”
“Core inflation has lost momentum especially in France. Most of the rise in German service prices was due to a rebound in the volatile component of package holidays according to our preliminary analysis. Thus, it seems that it still takes longer than what we had earlier expected for the price pressures to pick up in the Euro area.”