Free Trial

MNI BRIEF: Eurozone Inflation Lower, But Core Sticky

(MNI) LONDON
(MNI) London

There was some relief for the European Central Bank - and consumers across the region - in November, as headline harmonsied inflation slowed to an annual rate of 10.0%, down from 10.6% in October. Core inflation, however, was unchanged from the previous month's read at 5% year-on-year, data released by Eurostat Wednesday showed.

The ECB continues to grapple with higher inflation, which currently sits well in advance of its 2% medium-term target. To date this year, policymakers have raised the benchmark deposit rate from -0.5% and expectations are for at least another 50 bps of hikes at the December 15 meeting. (MNI SOURCES: ECB Weighs 50 In December, Hawks To The Fore)

Markets have downgraded the ECB terminal rates to closer to 2.8-2.9% by mid-2023 and are currently pricing around 56bp for the November rate decision. Yet the lack of easing in core inflation likely implies the decision between 50bp and 75bp could be close.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
True
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
True

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.