With core inflation coming in at the same level, this may present a problem for the ECB.
Just when everyone assumed Eurozone inflation was going to continue its downward trajectory, data out today showed CPI remained stuck at the 5.3% over the year with core inflation also coming it at the same level. This presents something of a problem for the European Central Bank (ECB) when it meets in two weeks to decide interest rate policy. A 25 bps hike is most likely on the cards after this data print, which would take the deposit facility rate to 4%.
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