ICYMI – German December inflation got here in a lot larger than estimated

Justin had the bombshell German CPI information on Monday:

• Germany December preliminary CPI +2.6% vs +2.four% y/y anticipated
• For some context, it was at 2.7% again in September. Stagflation a lot?

Ugh.

To emphasise the soar in inflation, Spain’s December CPI additionally got here in faster-than-expected value at 2.eight% (2.6% anticipated)

That is going to solid doubt on the tempo of anticipated European Central Financial institution fee cuts in 2025. Pricing is presently for round 100 foundation factors of cuts in 2025. EUR/USD rose on Monday with all this.

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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