Eurozone Services Slowdown: What This Disinflation Signal Means for Your Investments and Business Growth
You ever wonder how inflation can play hide-and-seek with economists and central bankers alike? Just when we thought July’s HICP inflation would drop below the ECB’s 2% target—to 1.9%, no less—it stubbornly held its ground instead. It’s like inflation decided to throw a little curveball. What’s really catching my eye, though, is the surprising uptick in food inflation, now sitting at an 18-month high of 3.3%. That figure might seem tame compared to the 15.5% peak during the energy crisis, but believe me, it’s enough to rattle households and inflation expectations alike. Meanwhile, services inflation is dropping faster than anyone hoped—quite the wildcard scenario for Christine Lagarde’s ECB to digest. Goods inflation? It’s quietly creeping up too, nudging the numbers in unexpected ways. So, what does this mean for the ECB’s next moves, and can we expect inflation to finally take a breath and slide below target? Let’s dive into these surprising twists and turns—because in the world of economics, the only certainty is uncertainty. LEARN MORE
Headline HICP inflation surprised modestly to the upside in July, holding steady at the ECB’s 2% target, against our and consensus expectations for a move lower to 1.9%, ABN AMRO’s economist Bill Diviney reports.
Post Comment