- Prior +10.1%
- Core CPI +5.2% vs +5.0% y/y expected
- Prior +5.0%
The drop in headline annual inflation is expected after the softer readings seen in Germany and France but there's a massive caveat to the report to take note of. That being core annual inflation actually ticked higher, with the reading coming in at 5.2% compared to the 5.0% reading in November. If anything else, that will vindicate the ECB to stay on the more hawkish path.