European Markets Gained 3rd Day In Row After Inflation Pressures Eased

Bridgette Randall
04 Jan, 2023
Frankfurt

European markets closed higher for the third day in a row after inflation unexpectedly fell in France.

Market sentiment was positive after inflation in France declined matching the recent weakening of inflation in Spain and Germany. Though inflation eased the price pressure remained elevated.

Moreover, Germany's import inflation also eased, supporting further market advance in the session today. 

 

France's December Inflation Eased 

Harmonized inflation rate declined to 6.7% in December from 7.1% in November, France's statistical agency INSEE said Wednesday. 

Inflation, when measured on the consumer price index, declined to 5.9% in December from 6.2% in November. 

Spain's harmonized inflation declined to 5.6% in December from 6.6% in November and Germany's inflation dropped to 9.6% from 11.3% in the previous month. 

 

Germany's Import Price Inflation Dropped In November 

Germany's import price inflation declined in November to 14.5% from 23.5% in October, data from Destatis or Federal Statistics Office showed Wednesday. 

Elevated energy prices drove the inflation in the month. 

Energy import prices rose 37.9% in November and non-energy imports increased 9.7% from a year ago and rose 0.7% from the previous month. 

Import prices declined for the third month in a row and prices fell 4.5% in November after dropping 1.2% in October.   

Export price inflation also rose but at a slower pace in November and price increase slowed to 11.6% from 13.6% in October. 

On a monthly basis, export prices decreased 0.5% after falling 1.9% in October. 

 

Swiss Inflation Accelerated In 2022 

Swiss Inflation surged in 2022 after energy prices and housing costs rebounded, according to the latest data from the Federal Statistics Office. 

Average annual consumer price index inflation increased to 2.8% in 2022 from 0.6% in 2021 and rebounded from the decline of 0.6% in 2020. 

in 2022, the price of goods produced domestically rose 1.6% and imported goods surged 6.7%.  

Price inflation slowed in December to 2.8% from 3.0% rise in November. 

The prices continued to rise in 2022 and peaked at 8.5% in August and December inflation dropped to the lowest level seen eight months ago. 

 

European Market Indexes Advanced 3rd Day In a Row   

The DAX index increased 2.2% to 14,490.78, the CAC-40 index jumped 2.3% to 6,776.43 and the FTSE 100 index added 0.4% to 7,585.19. 

Brent crude oil decreased 5.1% or $4.10 to $77.93 a barrel and Dutch TTF natural gas futures plunged 10% to