Euro zone inflation jumps, cooling case for ECB rate cuts

Data appear to confirm the ECB's prediction that inflation bottomed out in November and will now flatline in the 2.5% to 3% range through 2024

Investors are betting that the ECB will cut rates six times this year with the first move coming in March or April. Pic Stephen Collins/Collins Photos

Euro zone inflation surged last month and could still go higher in the early part of 2024, easing financial markets pressure on the European Central Bank to start cutting interest rates from record highs.

Inflation across the 20-nation bloc jumped to 2.9% in December from 2.4% in November, just shy of expectations for a 3.0% reading, mostly on technical factors, such as the end of some government subsidies and low energy prices getting knocked out of base figures.