Euro area inflation likely accelerated again in December – RBC CM

According to the research team at RBC Capital Markets, Euro area inflation likely accelerated again in December and they are forecasting the headline rate to print at 0.9% y/y from 0.6% in November.

Key Quotes 

“Energy prices will again be the key driver with transport and home heating fuel prices having turned positive y/y in December. From here that effect should continue to see inflation trend higher in coming months though the first half of the year, reinforced by the recent OPEC agreement on production levels, though we continue to see ‘core’ inflation remaining below 1.0% y/y throughout that period.”