Energy accounts for almost half of the euro area inflation and for more than one percentage point in the UK. It is also the main driver of the pick-up in 3m/3m annualised inflation in the US. Core inflation remains below 3% y/y, except in Spain, but the 3m/3m annualised rate is firming in the US, France, Italy and Japan. In the euro area, producer prices are rising almost three times as fast as the HICP. The gap is also marked in the US and the UK. Long-term expectations remain close to 2% in the US and the euro area. They are easing in Japan and remain stable, albeit at a higher level, in the UK.
