Germany’s annual inflation in December for the first time grew slowly in six months, yet remained high above the European Central Bank’s price stability target of 2% for the European zone as a whole.
Consumer prices, adjusted to make it comparable to inflation data from other European Union (HICP) countries which rose 5.7% year -on -year compared to a reading recorded in November of 6.0%, the German Federal Statistics Office said.
Waima so Germany's national consumer price index (CPI) was also worrisome as it rose by 5.3% year -on -year, the highest reading since June 1992 and rising price pressures after a 5.2% inflation rate in November.
Inflation data from major European economies led to bearish in the bond market. According to analysts, “there is a clear inflation risk that shows an upward trend - not only for Germany but also for the European zone. It is time for the ECB to take the right steps ”.
On the other hand, the minutes of the Fed meeting in December showed that a tight job market and high inflation could push the US central bank to raise rates earlier than expected and start reducing its overall asset holdings.
The Fed futures fund expects there is an 80% chance that a rate hike will occur with an increase to 0.25% at the Fed meeting in March.
