- Prior +9.1%
- Core CPI +4.8% vs +4.7% y/y expected
- Prior +4.3%
And there you have it. Inflation in the euro area hits double-digits (as it did with Germany yesterday) as the headline reading comes in at a record high of 10%. While price pressures are still mainly driven by volatile energy and food prices, all other categories are also seeing an acceleration in their readings so it is looking more broad-based. I reckon this pretty much solidifies the case for the ECB to push for a 75 bps rate hike next month.
