The latest readings for the eurozone show that both headline CPI inflation and core CPI inflation came in exactly in line with market expectations. Headline CPI rose by 0.2 percent month-on-month and 2.1 percent year-on-year, while core CPI increased by 0.3 percent month-on-month and 2.4 percent year-on-year.
The European Central Bank now faces an interesting decision. With economic data coming in weaker than expected, but inflation aligning with forecasts and remaining close to the ECB’s inflation target, is there still room for further interest rate cuts in the eurozone?
The upcoming ECB meetings may therefore prove particularly interesting.
