Tuesday, February 27, 2024

Euro zone inflation rebounds in December, fueling rate-cut debates

Must read

Offerpad narrows Q4 loss, expects to be back in black later this year

The iBuyer expects to sell between 750 and 850 homes during Q1 2024, generate $245 million to $285 million in revenue and...

Institutional investors are scooping up Kiavi’s ‘fix and flip’ bridge loans

Kiavi upsizes its 16th securitization to $350 million and says largest deal since November 2021 brings total issuance since 2019 to $4...

With $15M goal, Knock turns to ‘everyday’ investors

Alternative financing company Knock has secured $10 million from Second Century Ventures, the venture capital arm of the National Association of Realtors,...

Star broker Jaime Richichi moves to Sotheby’s International Realty

NYC Compass broker Jaime Richichi is taking her talents to Sotheby’s International Realty. Richichi’s home base will be SIR’s East Side Manhattan...

Shoppers at delicatessen market stall in Milan, Italy, on Thursday, Dec. 28, 2023.

Bloomberg | Bloomberg | Getty Images

Headline inflation in the euro zone jumped to 2.9% in December, up from 2.4% the previous month, though core inflation continued to ease.

The annual print was a little lower than the 3% forecast in a Reuters poll of economists.

Core inflation — which doesn’t include energy, food, alcohol and tobacco prices — cooled to 3.4% last month from 3.6% in November.

An overall rise was expected due to base effects from the energy market, as price falls moderate. Energy prices were down 6.7% year-on-year in December, versus a 11.5% fall in November.

Friday’s data will add to the debate over the trajectory of the European Central Bank’s policymaking, with markets expecting rate cuts to begin before the summer.

The headline inflation rise “is essentially a technicality,” Michael Field, European market strategist at Morningstar, said in a note.

“Oil prices fell massively from their 2022 highs, but in December the caps that many European governments had placed on energy prices ran out, meaning the prices consumers paid went up, which has impacted inflation,” Field said.

Central bankers were aware this spike could be coming and so it is unlikely to impact their decision-making, Field said, adding that January’s print will be crucial to see if the downward trend resumes.

More articles

Latest article

Offerpad narrows Q4 loss, expects to be back in black later this year

The iBuyer expects to sell between 750 and 850 homes during Q1 2024, generate $245 million to $285 million in revenue and...

Institutional investors are scooping up Kiavi’s ‘fix and flip’ bridge loans

Kiavi upsizes its 16th securitization to $350 million and says largest deal since November 2021 brings total issuance since 2019 to $4...

With $15M goal, Knock turns to ‘everyday’ investors

Alternative financing company Knock has secured $10 million from Second Century Ventures, the venture capital arm of the National Association of Realtors,...

Star broker Jaime Richichi moves to Sotheby’s International Realty

NYC Compass broker Jaime Richichi is taking her talents to Sotheby’s International Realty. Richichi’s home base will be SIR’s East Side Manhattan...

Should you leave your brokerage? 5 questions to ask yourself first

Should you tough it out at your current brokerage or risk the unknown by leaving? Milena Monet shares questions to ask yourself...