A little good news under the hood of services inflation

Data released this morning suggest that May’s surprisingly large jump in euro-zone services inflation may have been due to the most unlikely of culprits: Taylor Swift. So to some extent, the ECB can “shake it off” (apologies). Wage-sensitive inflation remained strong in May, which will be more of a concern, but timelier data on pay growth suggests that it will decline in the coming quarters.

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