While the headline annual inflation declined more than estimated, as was the case with the German, French, and Italian readings this week, core annual inflation actually jumped higher in December as seen here.
That will offer the ECB no respite in their fight against inflation, with rising price pressures becoming more embedded in other parts of the economy. As mentioned yesterday, such tentative signs of slowing inflation (via the headline) isn’t going to change the ECB’s mind – at least not yet.
