Eurozone Inflation Jumps to 2.9% in December, But Seen as Temporary Blip
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Inflation in the eurozone rose to 2.9% in December, up from 2.4% in November, due to an increase in energy costs after government support schemes expired.
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Food inflation moderated slightly, easing pressure on households, dipping from 6.9% in November to 6.1% in December.
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Markets expect ECB interest rates to be cut in 2023 amid economic slowdown and falling inflation, but December data unlikely to shift ECB policy.
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Spike in inflation was anticipated after end of energy subsidies; focus remains on getting inflation back to 2% target.
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Economists say December inflation rise is temporary "blip" and expect inflation to keep falling in coming months.