Eurozone inflation fell back into single digits in December, with data published on Friday morning showing the headline rate hitting 9.2 per cent after annual price growth exceeded 10 per cent for the previous two months. Franziska Palmas, senior Europe economist at research group Capital Economics, said: “The ECB is likely to stick to its hawkish rhetoric in the near term despite the big falls — and likelihood of further sharp declines this year.” While falls in fuel prices and government subsidies to help businesses and households out with higher power bills have cut headline inflation rates, underlying price pressures remain strong.
