Eurozone weekly economic briefing | Strong January inflation brings swift ECB hawkish shift

January inflation surprised on the upside, with the headline rate up to 5.1%, the highest since the 1990s. And while the energy component rose over the month, core inflation did not normalize as expected.

What you will learn:

  • This number spurred a swift hawkish shift at the ECB meeting yesterday.
  • GDP growth for Q4 at 0.3% q/q confirmed the ongoing slowdown in momentum in the eurozone, which we see continuing in Q1 this year.
  •  The main downside risk is the impact of higher inflation on consumers behaviours.

Topics: Risk, Europe, Eurozone, ECB, Wages, Inflation, Euro, Coronavirus, GDP, Banking, Recovery, Macroeconomics, Inflation risks, Outlook, GDP growth, Energy prices, Eurozone weekly economic briefing, Omicron

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