Inflation rose to 2.0% in December, up from 1.8% in November, amid faster rises in food and transport prices. Moderate domestic demand is likely to cap inflation in recent months; Inflation is much lower than in other advanced economies.
The trend has not changed, with average annual inflation coming in at 1.9% in November in December.
Finally, consumer prices rose by a seasonally adjusted 0.19% in December compared to the previous month, matching the November reading. The December result was the weakest reading since September.
FocusEconomics panelists expected inflation to average 2.2% in 2023, unchanged from the previous month’s forecast. In 2024, our committee expects inflation to average 2.0%.