Despite Friday’s data showing eurozone inflation accelerating to 2.6% in February, the European Central Bank (ECB) believes it can make “one last push” before returning to its 2% target. writes about this Bloomberg.
As noted in the publication, despite the fact that inflation rates exceed expert forecasts, there are also positive signals in the statistics. Notably, core inflation, excluding volatile energy prices, fell for the seventh consecutive month.
Bloomberg Economics estimates the overall rate could slow to 2.2% by early March. Bank of America economist Evelyn Herrmann also predicts that inflation will return to the 2 percent target by 2026.
The ECB is still concerned about the rate of wage growth that could sustain high inflation. But the figures for the fourth quarter are also encouraging: growth fell to 4.5% from 4.7% in the previous quarter.
Bundesbank president Joachim Nagel called for no rush to ease policy but also said discussions were shifting to discussing the timing of rate cuts, possibly as early as June.
Before this, it was known that inflation was increasing in Europe. ruins high against the background of expensive fuel.
Previously in Europe seen A new kind of inflation.