The increase of half a percentage point compared to the November figure appears to have been determined by an easing of the decline in energy prices
Food, alcohol and tobacco are expected to continue to record the highest inflation rate in December (6.1%, compared to 6.9% in November), followed by services (4.0%, stable) compared to November). But a decrease in energy inflation fell from -11.5% in November to -6.7% in December.
The news is likely to dampen hopes of an early interest rate cut by the European Central Bank in 2024. The bank’s rate remained unchanged from last October at 4%, after steady increases that began in July 2022.
Christine Lagarde, president of the ECB, expressed concern late last year that she expected inflation to rise again with the removal of energy price subsidies. Last November you said that the ECB would not start cutting rates until “the next two quarters”.