In this new Ecoweek issue : Hélène Baudchon's editorial : " Eurozone and United States: where does inflation come from? Tarik Rharrab's analysis of the lates economic indicators on uncertainty and, as usual, the economic scenario.
According to the latest data, inflation in both the euro area and the US is mainly driven by its core component and thus, at first glance, by demand. Supply factors are also at work through the spillover effects of the shock on energy and commodity prices and food inflation. These first-round effects show first signs of fading, which should pull inflation down more sharply in the coming months. Wage dynamics are closely monitored given their inflationary nature, which is modest but persistent, justifying the monetary response.
The European Commission’s economic uncertainty index fell in May, continuing the decline since October 2022, due to the reduction in uncertainty in various business sectors, apart from construction, which saw a marked rise.
Rates and exchange rates - GDP Growth and inflation
