Eurozone Inflation Rises to 2.9% in December, But Outlook Remains Muted
• Inflation in eurozone rose to 2.9% in December, up from 2.4% in November, as government subsidies for energy costs ended • Core inflation rate excluding food and energy prices continued downward trend, slowing for 5th straight month to 3.4% • Food prices main driver of inflation now but have been falling; energy prices shrank 6.7% year-over-year • Inflation outlook remains "benign" with consumer demand and inventories still weak • ECB expects inflation to reach 2% target by end of 2025; trying to convince markets not to expect rate cuts too soon