Inflation Trends Shape Economic Outlook in Australia, Eurozone, and Germany

Core inflation declines in Australia, raising chances of a rate cut, while inflation edges higher in the Eurozone and Germany, complicating monetary policy decisions.

Australia's core inflation dropped to 3.2% in November, within the Reserve Bank's target range, increasing the likelihood of an interest rate cut in February.
The Eurozone's inflation rose to 2.4% in December, driven by higher energy and services costs, while core inflation remained steady at 2.7%.
Germany's inflation unexpectedly climbed to 2.9% in December, with core inflation rising to 3.1%, signaling persistent price pressures despite falling energy costs.
Economists expect inflation in both the Eurozone and Germany to stabilize near 2% later in 2025, but current trends suggest caution in monetary easing by central banks.
The Australian labor market remains tight with rising job vacancies, while in Europe, concerns over wage growth and services inflation continue to influence economic forecasts.