Euro area inflation surprises again
Bottom reached for now/higher labour costs as a driver of inflation/ECB will probably not cut key rates until the end of 2024
Commerzbank Economic Research
November 30 2023
The sharp fall in the inflation rate for services was particularly surprising. Core inflation even fell from 4.2% to 3.6%. Today's price data is likely to fuel speculation that the ECB will soon cut its key interest rate. However, we think it is too early to declare victory over inflation, given the strong rise in wages.
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