The inflation in the Eurozone fell less sharply than expected and, with an annual rate of +2.6%, was above expectations of +2.5%, but still well below the values recorded in the middle of last year. Core inflation fell from +3.3% to +3.2%, 0.2 percentage points above consensus. Since the ECB expects core inflation to be +3.1% for the first quarter of 2024 and has so far been +3.2%, it is unlikely that this will have a significant impact on the ECB’s interest rate decisions. Therefore, caution and patience are likely to continue to be the mantra.
www.fixed-income.org
Photo: Nick Sheridan © Janus Henderson Investors