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French Inflation Inches Higher on Energy, Services Costs
Bloomberg
French Inflation Inches Higher on Energy, Services Costs
William Horobin
Thu, Jan 4, 2024, 5:21 AM EST3 min read
(Bloomberg) -- French inflation edged higher in December as service prices grew more quickly and energy costs jumped after the government pared back support for households.
The 4.1% annual reading was higher than November’s 3.9%, data released Thursday showed. It was in line with the median estimate in a Bloomberg survey of analysts and remains well below the 7.3% peak notched in February 2023. ... On a monthly basis, prices rose 0.1% — less than economists expected, though exceeding the previous month’s negative figure.
The euro zone’s No. 2 economy is experiencing a similar uptick in inflation to the rest of the region — though the European Central Bank is unlikely to worry unduly. Price gains in the 20-nation bloc have cooled dramatically of late, with the 2% target coming back into sight in November.
That prompted investors to scale up bets that interest rates will be lowered sooner than the middle of 2024, as some ECB officials have been signaling. Money markets point to 166 basis points of easing by year-end — equivalent to more than six quarter-point cuts. As recently as late November, just three such reductions were priced for 2024.
{snip}
French Inflation Inches Higher on Energy, Services Costs
William Horobin
Thu, Jan 4, 2024, 5:21 AM EST3 min read
(Bloomberg) -- French inflation edged higher in December as service prices grew more quickly and energy costs jumped after the government pared back support for households.
The 4.1% annual reading was higher than November’s 3.9%, data released Thursday showed. It was in line with the median estimate in a Bloomberg survey of analysts and remains well below the 7.3% peak notched in February 2023. ... On a monthly basis, prices rose 0.1% — less than economists expected, though exceeding the previous month’s negative figure.
The euro zone’s No. 2 economy is experiencing a similar uptick in inflation to the rest of the region — though the European Central Bank is unlikely to worry unduly. Price gains in the 20-nation bloc have cooled dramatically of late, with the 2% target coming back into sight in November.
That prompted investors to scale up bets that interest rates will be lowered sooner than the middle of 2024, as some ECB officials have been signaling. Money markets point to 166 basis points of easing by year-end — equivalent to more than six quarter-point cuts. As recently as late November, just three such reductions were priced for 2024.
{snip}