Eurozone inflation rises on energy shock, fuelling ECB rate-hike bets
Eurozone consumer prices accelerated in May on the back of a surge in energy costs, according to Investing.com. The data is reinforcing market bets on a possible rate hike at the European Central Bank's next meeting.
Photo: Volker Morr / PexelsAccording to Investing.com Europe, Eurozone consumer prices accelerated in May on the back of energy-led components. The print added fresh evidence for the view that the European Central Bank could lean towards a hiking signal at its next meeting.
The upward surprise highlighted the impact of Middle East-related energy risk on European price structures. Government bond reactions were contained, while short-end yields edged higher. Bank officials have stressed a 'patient but data-driven' tone over recent weeks.
Analysts say Frankfurt's focus will be the path of core inflation and the strength of growth data. The euro received a limited tailwind after the release. Investors are now watching how upcoming labour-market and PMI readings combine to shape rate pricing.
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