ƒ  As expected, the negative inflation episode that had begun in March ended in November. The 0.4% m/m
increase in consumer prices took the inflation rate up to 1.8% from -0.2% in the previous month, due to a
pronounced base effect related to energy prices. Core prices – excluding food and energy – were unchanged m/m
and up by 1.7% y/y.
ƒ  Housing starts rebounded by 8.9% m/m in November, to 574 000 (at an annual rate) from 527 000 in the
previous month. However, despite improving new home sales and diminishing inventories, housing starts have
failed to increase over the past six months. The postponement of the deadline for the first time homebuyer tax credit
from November 2009 until April 2010 may provide some support to residential construction in the months ahead.