EUR: eurozone inflation increase by 1.5% year-on-year in November

As expected, eurozone inflation pushed up to 1.5% year-on-year in November from 1.4% in October. The euro slid against the pound but managed to make some gains against the dollar.

In what has been a year of tumultuous elections across the eurozone, Austria has now become the only country in western Europe with a far-right presence in the government. The new chancellor, Sebastian Kurz, struck a deal with the Freedom party which is a nationalist party founded by former members of the Nazi party after the second world war. Around 5,500 people attended protests in Vienna yesterday and it is yet more worrying evidence of a rise in populism across Europe.

Today sees the release of the German IFO business climate which is expected to hold steady at 117.5 and we will also see eurozone wage growth. They grew by 2% in the second quarter of 2017 and might push up to 2.1%.