Euro Zone Inflation Ticks up in July, Bolstering Rate Hike Case
Peter Kazimir said policymakers should not surprise markets in September, as traders fully price in a 25-basis-point move and expect more if fighting worsens.
- On Monday, European Central Bank Governing Council member Peter Kazimir signaled that policymakers will likely raise interest rates in September to curb inflation risks exacerbated by the Middle East conflict.
- Oil prices surged past $100 a barrel last week due to renewed conflict in the Middle East, prompting financial markets to fully price in a 25-basis-point hike as the ECB prioritizes containing energy-driven inflation.
- "I remain of the view that at least one more hike will be needed," Kazimir said, arguing that the Slovak central bank chief must act preemptively before costly second-round effects become visible.
- Financial markets anticipate at least two more rate increases from the ECB, with moves priced in for October and March; Kazimir warned that persistent price pressures would necessitate further tightening in coming quarters.
- President Christine Lagarde noted that the full inflationary impact of the energy shock has yet to play out, leaving policymakers to await fresh economic data in coming weeks before deciding on additional tightening.
38 Articles
38 Articles
(Brussels=Yonhap News) Correspondent Hyun Yun-kyung = The rate of price increase in the Eurozone (21 countries using the euro) in July widened slightly compared to the previous month.
The respite that inflation gave to the eurozone in June has lasted only a month. After then recording its first decline of the year, the price index rebounded again in July to 2.9% year-on-year, one tenth more than the previous month, mainly due to the new increase in energy prices. Thus, the data published this Friday by Eurostat confirms that price pressures remain present in the monetary union. The main responsible for this new increase was e…
BT
Rising inflation in the eurozone probably means that the ECB will raise interest rates again, according to a senior economist.
Sapo
Noticias ao MinutoThe euro area's rate of homologous inflation rose again in July, to 2.9%, after a fall in June, according to an estimate by Eurostat. According to the European Union's (EU) statistical office's rapid estimate, the annual rate of inflation in the euro area is expected to be 2.9%, above the 2.0% counterparts and 2.8% registered in June. The indicator slowed down in June, after three months of rise, due to fuel prices, and in July again increased, …
This slight acceleration, linked in particular to renewed tensions over energy prices due to the conflict in the Middle East, is in line with the expectations of economists surveyed by Bloomberg. Energy prices did indeed rise by 10% last month, compared to 8.5% in June, a consequence of the surge in prices at the pump triggered by the collapse of the ceasefire between the United States and Iran. Prices for services (+0.1 percentage point to 3.3…
In the middle of the uncertain economic situation, inflation in the eurozone rose in July to 2.9 percent above the previous year's level. It remains well below its peak in spring.
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