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Eurozone inflation rose to 2.4 per cent in December, complicating the European Central Bank’s attempts to boost the region’s flagging economy with interest rate cuts.
The figure was in line with market expectations, according to a survey of economists by Reuters.
It also marked the third consecutive month in which the region’s inflation has risen, comparing with November’s rate of 2.2 per cent.
The ECB has cut interest rates four times since June and is widely expected to lower the benchmark deposit rate from 3 per cent later this month.
Investors were hoping for a big cut to soothe concerns over weak growth in the single currency zone. However, the increase in price pressures may make a smaller 25 basis point cut more likely.
The ECB expects inflation to fall back to close to its 2 per cent target over the course of this year.
This is a developing story
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