Eurozone Inflation to Reach 3.5% in Coming Months

Dow Jones
08/19

1522 GMT - Indirect effects of surging energy prices on eurozone core inflation have been close to zero so far, but they are likely to build in the second half of the year, Capital Economics' Jack Allen-Reynolds says in a note. If energy prices remain around their current levels, headline inflation will soon rise to about 3.5% in the next few months, he says, from 2.9% in July. Together with a likely increase in energy inflation in August, food inflation will probably rise too. Meanwhile, the rise in core goods inflation could have further to run, given that ICT-equipment inflation will keep rising on the back of strong global demand for artificial intelligence-related goods, he says.

 

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