On December 29, 2024, following snowfall in Frankfurt am Main, a man was seen riding a bicycle on a snow-covered street. In economic news, the euro zone’s annual inflation rose for the third consecutive month to 2.4% in December, as reported by Eurostat, aligning with economist forecasts and an increase from 2.2% in November. Core inflation remained steady at 2.7% for the fourth month, while services inflation rose slightly to 4% from 3.9%. These changes were anticipated as base effects from lower energy prices dissipated. The European Central Bank (ECB) will closely monitor these trends, especially as markets predict a reduction in interest rates from 3% to 2% over the year. Germany’s inflation rate surprised analysts by reaching 2.9% in December, while France’s inflation fell short of expectations at 1.8%. Haig Bathgate of Callanish Capital noted that ECB policymakers might not be alarmed by the monthly inflation increase as long as it stays consistent with predictions, suggesting a clearer outlook for rate adjustments in Europe compared to the U.K. This is an ongoing news story subject to updates.
