Inflation ticked up in the final month of last year on base effects. The inflation downtrend remains intact and is likely to allow the ECB to normalise policy rates through the year but will most likely not be fast enough to prompt a March rate cut. Headline inflation rose to 2.9% y/y in Dec ‘23, up from 2.4% y/y in Nov ’23 - in line with Bloomberg consensus at 2.9% y/y but probably surprising a bit to the upside after yesterday’s German and French prints. Core inflation dropped to 3.4% y/y – also in line with expectations, down from 3.6% y/y in Nov. Core services prices were unchanged at 4.0% y/y while core goods ... (full story)