French inflation stabilized in December, indicating price pressures may be near a peak in the euro area after surging on energy costs in the past few months. The 3.4% year-on-year increase in the euro area’s second largest economy was slightly smaller than the 3.5% economists had expected, bucking a trend of recent upward surprises. Data later this week are also expected to show consumer prices eased in Germany and the currency bloc as a whole. The strength of inflation gave the European Central Bank more leeway to plot a course out of exceptional monetary stimulus at a meeting last month. The first step decided by policy makers sees net asset purchases under the emergency program ending in March with only a temporary boost to regular bond buying to smooth the exit. France’s December inflation report on Tuesday showed a slowdown in rising energy costs offsetting an acceleration in food […]