Market Outlook: Eurozone Inflation Expected to Decline Next Year

Foreks - ING economist Bert Colijn stated that the Eurozone may see a decline in inflation next year due to weakening demand. Consumer prices rose by 2.3% year-on-year in November, pushing inflation above the ECB's target. However, Colijn argued that core inflation, excluding the wildly fluctuating energy prices, remains stable and should decline in the coming months as demand weakens in the 20-member monetary union. Colijn noted, "The labor market is softening, and we expect that to come with moderate wage growth throughout next year."