- Prior +0.9%
- HICP +0.7% vs +0.8% y/y expected
- Prior +0.8%
France’s headline annual inflation eased slightly in December to 0.8%. But looking at the breakdown, the drop can be attributed to a more pronounced decline in energy prices, particularly those of petroleum products. On the other hand, food prices are seen accelerating a little to 1.7% – up from 1.4% previously. Meanwhile, services inflation continues to keep steady just above the 2% threshold at 2.2% in December.
The monthly estimate shows a 0.1% increase in consumer prices, following a 0.2% decline in November. And in breaking that down, it can be attributed to the seasonal rebound in prices of services, particularly in those of transport, and, to a lesser extent, to the slight rise in food prices.
Overall, this won’t really get the ECB moving with the main focus on price pressures and inflation staying on Germany. Stagflation concerns in Europe’s largest economy remains the biggest risk to deal with at the moment. So, that will be eyed more closely and we will be getting the German numbers later in the day.
EUR/USD is trading steadier today at 1.1732 currently, up just 0.1%, with the dollar keeping a touch softer across the board.
