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Eurozone inflation remains stubbornly above target

“The direction of travel in inflation however will undoubtedly be the welcome silver lining to this murky inflation cloud.”

19 September 2023

The final reading for eurozone CPI in August slowed just a little bit more than the previous initial estimate indicated with inflation on an annualised basis falling to 5.2% versus the initial reading of 5.3%. It still remains stubbornly above the European Central Bank (ECB) target rate of 2% and with an accompanying oil price spike seen over the last few months this will continue to raise headaches for the governing council. The direction of travel in inflation however will undoubtedly be the welcome silver lining to this murky inflation cloud. Rates are now at the expected peak in the eurozone and we should expect them to remain at this level for some time.

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The information in this document is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained in this document may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information. Past performance is not an indicator for the current or future development.

Charles Hepworth

Investment Director
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