How out of step is the ECB?
European Central Bank President Lagarde said that the June rate hike was a deliberate, unanimous, move, while policymaker Wunsch said that another rate hike could be needed quickly.
Germany’s flash June CPI eased to 2.3% y/y, down from 2.6% in May and slightly below market expectations of 2.6%, according to preliminary data.
This marks a further decline from the over two-year high of 2.9% recorded in April, as goods inflation fell to 1.7% from 2.2%, driven by easing energy price pressures (3.4% vs. 6.6%). Food inflation and services inflation remained steady at 0.4% and 3.1%, respectively, while core inflation, excluding food and energy, held at 2.5%. The EU-harmonized annual inflation rate also slowed to 2.4% from 2.7%, below expectations of 2.6% but still slightly above the ECB’s 2% target. source: Federal Statistical Office
France’s flash June CPI -0.2% m/m (expected 0.0%; last 0.1%); 1.8% yr/yr (expected 2.1%; last 2.4%).
May PPI 3.0% yr/yr (last 2.3%).
Italy’s flash June CPI 0.0% m/m (expected 0.2%; last 0.4%); 3.0% yr/yr (expected 3.1%; last 3.2%).
May PPI -0.2% m/m (last 0.3%); 7.3% yr/yr (last 6.8%)