• Prior +2.1%
• Core CPI +2.3% vs +2.3% y/y prelim
• Prior +2.4%

The key statistic here is core annual inflation, which continues to hold above the 2% threshold for now. As such, that will keep the ECB sidelined in waiting on their next potential policy move. As mentioned before, the main sticking point at this stage is Germany mostly and that will continue to keep policymakers on edge as we get into the new year.

Looking at the breakdown, food price inflation remains elevated as well at around 2.5% with services inflation clearly still the standout at 3.4% in December. In looking at the contributions to the headline inflation number:

• Food, alcohol, & tobacco +0.49%
• Energy -0.18%
• Non-energy industrial goods +0.09%
• Services +1.54%