Euro-Area Core Inflation’s Refusal to Slow Set to Worry ECB

(Bloomberg) — The European Central Bank is about to get fresh inflation data, with another strong core reading likely to overshadow a softer headline number.

(Bloomberg) — The European Central Bank is about to get fresh inflation data, with another strong core reading likely to overshadow a softer headline number.

Economists surveyed by Bloomberg before Thursday’s publication say consumer prices probably rose 8.2% from a year ago in February. At the same time, the underlying gauge that strips out volatile items like food and energy is predicted to stay at a record 5.3%.

The ECB is less than three weeks from its March 16 monetary-policy meeting, where another half-point rate hike is all but assured. What happens after that is yet to be decided, though back-to-back records on underlying inflation would support hawkish officials who reckon the current tightening cycle still has some way to go.

Bundesbank President Joachim Nagel said earlier Friday that “it would be a cardinal sin to let up too soon.”

–With assistance from Alexander Weber and Alessandra Migliaccio.

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