Eurozone inflation rises to 2.9%

Driven by energy prices

Eurozone inflation rose to 2.9% in December, reversing a six-month trend of decline, up from a two-year low of 2.4%.

Core inflation, however, dropped from 3.6% to 3.4%, while food inflation also continued its decline, with the increase in prices largely driven by energy base effects in Germany. The rise comes as questions swirl over when the European Central Bank will begin to cut interest rates, with the bank's next meeting due on 25 January. Markets are currently pricing in six rate cuts throughout the year, starting in March. Fed minutes warn rates could remain high 'for some time' Neil Birrell, CIO at Premier Miton Investors, said the data had been "much as expected". "There was a short-te...