Inflation in Europe .. a new record, or is it tapering off?

Economies.com
2 months ago

Global financial markets are waiting for crucial European consumer prices data for November, which will contribute to bets on the ECB rate hikes in December. 

 

European inflation hit record highs in October at 10.6%, so will it scale even fresher higher or will it finally taper off? 

 

The Timing

 

European consumer prices is expected to slip to 10.4% in November from 10.6% in October.

 

Lagarde

 

ECB President Christine Lagarde said ahead of the European Parliament that inflation hasn't reached its peak yet in the euro zone and could even reach higher peaks. 

 

Estimates

 

Analysts expected inflation to slide to 10.4% in November from 10.6% in October. 

 

Such a slip will take the edge off inflationary pressures on policymakers in the European Central Bank, however it's still probably hiking rates by 0.75% in December. 

 

It's not ruled out now that inflation might hit fresh record highs in November, which would make a 0.75% rate hike in December a certainty. 

 

Euro

 

A new record high in inflation will underpin euro against major rivals, as the ECB will continue to hike rates and tighten policies until inflation is brought under control. 

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