According to Jin10, Oxford Economics analyst Iain Simmons said eurozone inflation is still running above target and continues to face material risks. He said headline inflation rose by 0.1 percentage point in July to 2.9% as energy prices stayed high after tensions in the Middle East intensified. Simmons added that the risk of broader inflation effects has increased sharply since the breakdown of the Iran ceasefire agreement, which in his view strengthens the case for a rate hike in September. Even so, he said the inflation data so far point to a relatively mild response to the escalation in the Middle East, and that second-round wage effects later this year may remain limited. The remarks focus on inflation risks, energy-driven price pressure, and the policy implications for the eurozone’s September rate decision.
According to Jin10, Oxford Economics analyst Iain Simmons said inflation in the eurozone remains above target and still faces significant risks.
He said headline inflation rose by 0.1 percentage point in July to 2.9%, with energy prices staying elevated as tensions in the Middle East intensified.
Simmons said the risk of broader inflation spillovers has risen sharply since the breakdown of the Iran ceasefire agreement, strengthening the case for a rate hike in September.
At the same time, he noted that the inflation data so far show a relatively mild response to the escalation in the Middle East, and that second-round wage effects later this year may be limited.
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