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.
Euro area inflation reaccelerated in May, rising 0.8% m/m and 8.1% y/y, hitting the highest level since the inception of the euro in 1999, according to a preliminary report from Eurostat. Inflation stood at 7.4% in April and the May gains outpaced analysts expectations of a 7.8% rise.
Core inflation also picked up, rising at an annualised rate of 3.8%, further pressuring ECB policymakers ahead of their June 9 meeting. The central bank is already committed to normalise its monetary policy, with asset purchases now looking set to end in very early July, followed by a first hike in the coming cycle at the July 21 meeting. All indications were for a 25 bps hike, but this data will again raise the prospect of a heated debate at least for a 50 bps hike (MNI SOURCES1: ECB Seen Making Two To Three 25-BP Hikes In 2022).
Energy was again the main driver, rising 39.2% year on year, but as highlighted by the pick-up in core inflation, price rises are becoming more widespread.
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.