Euro zone inflation increased to 2.4% in December, marking the third consecutive monthly rise. This figure aligns with market predictions and surpasses November's rate of 2.2%. The European Central Bank (ECB) is grappling with this upward trend in inflation while simultaneously aiming to stimulate the region's economy through interest rate reductions.
Shoppers in Dublin city centre. Euro zone inflation rose to 2.4 per cent in December, in the third rise in as many months. Photograph Nick Bradshaw/The Irish TimesThe figure was in line with market expectations, according to a survey of economists by Reuters, and compared with November’s rate of 2.2 per cent.
The ECB has cut interest rates four times since June and is widely expected to lower the benchmark deposit rate from 3 per cent later this month.Some investors have been hoping for a big cut to soothe concerns over weak growth in the single currency zone. However, the increase in price pressures may make a smaller 25 basis point cut more likely.
German two-year Bund yields, a benchmark for the euro zone, fell 0.02 percentage points to 2.18 per cent after the figures were published.
Inflation Euro Zone European Central Bank Interest Rates Economy
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