- Prior +8.1%
- Core CPI +3.7% vs +3.9% y/y expected
- Prior +3.8%
The headline reading reaffirms another record inflation reading in the euro area, which may lay down the case for bigger rate hikes by the ECB. That said, with 75 bps already priced in for July and September, I don't think policymakers will stray away from that. The only positive is that core inflation was seen easing to 3.7% from 3.8% in May - at least from the annual reading.
