Europe’s inflation is up after months of decline. Could it delay interest rate cuts?

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — Inflation is on the rebound in Europe. The European Union’s statistics agency said Friday that consumer prices rose 2.9% on a yearly basis in December. It’s the first increase after seven straight months of declines. High food prices contributed, and there was the end of energy subsidies in Germany and France that had lowered prices a year ago. The rise in price levels has fueled debate over how soon interest rate cuts could be expected from the European Central Bank. Some analysts predict that rates wouldn’t start to come down until June, while others foresee cuts in April.