- Prior +2.4%
- Core CPI +3.4% vs +3.5% y/y expected
- Prior +3.6%
Headline annual inflation may show a jump in price pressures but core annual inflation actually eased slightly further in December to 3.4%, down from 3.6% in November. As such, this still reaffirms the ECB’s case to remain in pause mode at least for the time being. However, if price pressures start to become stickier in and around the 3% mark, that may see policymakers struggle to sell any talk of an imminent pivot. So, we’ll see.