Core inflation in the Euro Area rose above last month’s 5.3% print but ended up less than estimates of 5.5%, settling at a marginally higher 5.4%. Headline inflation rose 0.3% month-on-month but came in lower than anticipated at 5.5% and much lower than last month’s figure of 6.1%. The disinflationary trend in headline inflation is unlikely to taper the ECB’s willingness to continue hiking rates due to the issue of core inflation remaining well off target.
