French inflation steadied in December, signaling price pressures might have come close to the peak in the eurozone after surging on energy costs in the last few months. ENX down -1.40%, EUR USD down -0.11%
- The 3.4% year-on-year increase posted in the eurozone’s second-largest economy was slightly smaller than the initial estimate of 3.5% by economists.
- The weight of inflation gave the European Central Bank more opportunity to come up with a course out of exceptional monetary stimulus at a meeting last month.
- The first course of action plotted by policymakers will mark the end of net asset purchases under the emergency program in March with a short-term boost to regulate bond purchases.
- France’s December inflation report indicated a slowdown in increasing energy costs offsetting an increase in food and manufactured goods.
- Inflation in services dropped down slightly to 1.8% from 1.9% in November.
- Even though France shows signals of overcoming surging prices, southern European economies are still grappling with high inflation rates.