- Prior +5.2%
- Core CPI +4.5% vs +4.8% y/y expected
- Prior +5.3%
Euro area headline annual inflation falls to its lowest since October 2021, largely due to the steep fall in German price pressures as reported here yesterday. I would argue that it is still premature to declare victory on the inflation battle but the ECB will be able to use this latest data to spin the narrative in their favour after choosing to pause.