Double Digit Inflation In Euro Zone Is Here To Stay
According to experts, the inflation during November will also be in double digits. However, we are still waiting for the official data from the European Central Bank.
The increase in consumer price has slowed during the one and a half years, but it is still above 10% (double digit). Overall, the median inflation forecast from 32 experts is around 10.4%. The actual report will be out on Wednesday, and the general consensus is that it will be close to 10%.
Both the core inflation and the headline inflation will be close to the peak. As for the disinflation, experts believe that it will only be possible in 2023.
Inflation Is Here To Stay
For ECB, the inflation data for the month of November will be very important. According to experts, this data will be used to shape the upcoming policies of the central bank.
The vast majority expect that the officials will be raising the interest rate by 75 basis points. And if the inflation shows any signs of weakening, it means that a smaller rate hike will be on the cards.
However, keeping the multiple negative surprises in perspective, even the ECB VP has said that the inflation problem is not going to go away.
So for the next few months, the inflation in the EURO zone will be lingering close to the present levels (above 10%).
Although the inflation data may cool down a little in November, it will not be enough to give positive reassurance to the ECB.
As for the core inflation, it will be somewhere around 5% since it doesn't count for food and energy products. For ECB officials, core inflation is an important indicator to look at the current momentum.
The ECB officials believe that inflation will eventually come down, but they are not sure how long it will take though! It is only a few days before we get the official data for the Euro Inflation - So it is only a matter of time before we can see what's going on with the EU inflation.