A better picture of the underlying inflation trend is provided by core inflation, which excludes energy and fresh food. The underlying fell to 3.6% (from 4.2% in October), confirming an accelerated disinflationary trend. The slowdown in prices for recreational and transportation services provides additional evidence that the effect of reopening is definitely waning. The weakening economic environment should, in principle, favor the spread of disinflationary pressures to other parts of the services sector.
It is true that this is not what the price intention component of the services survey told us in November (a second consecutive increase in the price increase equilibrium), but if the economic sluggishness and pressures on utility prices continue energy remain contained during the winter, they could be controlled. Pricing intentions must prevail.