German inflation comes in above expectations as goods prices see a strong increase in December.

• Core CPI inflation increases 0.1 ppts to 3.1% YoY, and HICP inflation jumps 0.7% MoM and 2.9% YoY (vs 2.6% YoY expected).
• Energy and food were driving forces behind the goods acceleration from 0.7% YoY to 1.1% YoY with the former seeing a smaller deflation of -1.7% YoY (previously -3.7% YoY) and the latter seeing the annual increase rise 0.2 ppts to 2.0% YoY.
• Services inflation also saw a small acceleration of 0.1 ppts to 4.1%.