Latest data released by Eurostat - 29 October 2021
- Prior +3.4%
- Core CPI +2.1% vs +1.9% y/y expected
- Prior +1.9%
*ECB front door* Knock, knock. Inflation is here.
The headline reading jumps to a 13-year high and the core reading exceeding 2% just adds to the headache for the ECB even as Lagarde continues to defend the 'transitory' narrative in her press conference yesterday.
The issue here is that price pressures are still likely to accelerate in the months ahead and only maybe cool off going into the summer next year. Key word there being maybe.
