In today’s briefing:
- EA: Inflation Running Away From The ECB
EA: Inflation Running Away From The ECB
- EA inflation trounced expectations in Mar-22, even by its unruly standards, as it jumped by 1.6pp to 7.5%. Energy is mostly to blame, but the upside was still broad-based.
- Underlying pressures are trending far too strong for the target, and outcomes are running away from rapidly rising forecasts.
- The ECB faces another massive miss (2pp) in under a month. It needs to get on top of the problem. We still expect it to start hiking in Sep-22.
Before it’s here, it’s on Smartkarma
