ECB's Knot: Eurozone inflation is back on track
Comments from Knot
- Risks for headline inflation are tilted to the upside
- Upside inflation risks are mainly linked to more persistent supply side bottlenecks and stronger domestic wage-price dynamics
- Rise in market-based inflation measures is 'good news'
- ECB weighing options to ease the transition out of PEPP
There is nothing surprising here.