• Prior +3.4%
  • CPI +2.8% y/y
  • Prior +2.8%

The readings are similar to that in November, reaffirming that price pressures remain elevated going into 2021 year-end. As things stand, inflation is unlikely to tail off rather quickly in 1H 2022 but perhaps we may see a peak soon enough.

That said, it is best to be reminded that a scenario where inflation peaks is very much different from one where inflation falls back to 2%. Central banks are hoping for the latter but I doubt that will materialise this year.