In November inflation was still 10.1 percent. The decline was stronger than expected. Economists had expected an average of 9.5 percent in December.
Core inflation excluding energy and food, on the other hand, rose from 5.0 percent to 5.2 percent. Economists had expected 5.1 percent. Economists are currently paying particular attention to this figure because it gives an indication of the extent to which companies pass on cost increases, particularly in the energy sector, to consumers. This in turn can lead to so-called second-round effects in the form of higher wage demands. Experts speak of a price-wage spiral.
The medium-term price target of the European Central Bank (ECB) of 2% is still clearly exceeded. After a sharp rate hike of 0.75 percentage point, the ECB slowed the pace of interest rate hikes at its December meeting and raised the key rate by 0.50 percentage point to 2.50 percent. However, she promised further increases.
(SDA)