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.
Inflation in the eurozone was confirmed at 8.1% in May, with a variation in levels across the region, according to Eurostat. Prices rose just 5.8% y/y in France and Malta, but rose 20.1% in Estonia and 18.5% in Lithuania.
Core inflation rose 3.8% y/y, accelerating from 3.5% in April.
The data underlines the dilemma facing the European Central Bank -- the need to address rising prices but remain mindful of the different impacts across the region. With an intended hike of 25 bps in July, followed by a potential 50 bps hike in September, policymakers have at least signalled intent to embark on a tightening cycle. Further work towards a tool to fight fragmentation issues across EZ bond markets, as this week's ad hoc meeting of the Governing Council suggested, will give the ECB even greater flexibility in its fight against inflation (MNI INTERVIEW: ECB Should Hike By Up To 100Bps).
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.