Bert Cullen, the chief economist at ING, notes that the eurozone inflation rate jumped on the effects of energy prices as the oil price jumped in December and the underlying effects played a role, and the main inflation rose from 1 to 1.3%.

the main points
“Depending on developments in oil prices - which are likely to be volatile as tensions in the Middle East escalate recently - inflation is expected to head slightly above the 1% range for the coming months. Even so, the true story is core inflation, which is 1.3% for two months in a row now. This is higher than expected and hawks in the ECB may encourage some stimulus in the second half of last year. ”

"Retail sales figures for November may give rise to some excitement, as they come in 1% higher than expected growth on a monthly basis. However, it is important to remember that the rise of Black Friday in the Eurozone will play an important role here."

"While the higher core inflation reading will be on the radar of the European Central Bank, continued slow growth and easing wage pressures make the rapid rise to the 1.5-2% range a scenario of upside risks, rather than as a base."