Spain, Belgium, France, Italy and Germany all posted hotter September inflation prints this week, with Spanish core rising to 3.1% and French services inflation to 2.2%, testing the ECB's view that wages aren't yet feeling the pass-through ahead of its October 29 rate decision.
ECB President Christine Lagarde told the European Parliament’s ECON committee on Monday that a measured response remains appropriate even as energy inflation reaccelerates across the euro area. Source
Spain, Belgium, France, Italy and Germany all put out September flash inflation prints this week. Every one came in hotter than the month before, and four of the five beat consensus. This isn't five isolated surprises. It's one energy shock moving through the currency union at once, in the same direction, country by country.
