European Economics

European Economics Focus

2 July, 2018

Is euro-zone inflation set to take off?

Germany is the only major euro-zone economy where underlying inflation looks set to rise meaningfully in the next year or so. But even there, inflation is likely to remain lower than in major economies elsewhere such as the US and UK. This suggests that there is little prospect of core inflation for the euro-zone as a whole soon coming close to the ECB’s near-2% target for the headline rate.

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