OPINION
Market Rating Before FOMC MeetingJan 31
Euro Area Inflation is still at an all-time high
According to data released by Eurostat today at 11:00 (GMT+2), Euro Area annual inflation rate was 7.4 percent in March 2022, up from 5.9 percent in February. Core CPI was 1.2 on monthly basis and 2.9 percent on annual basis.
In March preliminary data, inflation hit 7.5, all-time high, and finally, it was registered as 7.4 percent. Eurostat indicated that energy product increased by 12.2 percent, followed by tobacco (2.5 percent and energy, food, alcohol & tobacco (1.2 percent). On annual basis, energy increased by 44.4 percent. This was followed by unprocessed food (7.8 percent), tobacco (7.6 percent), food, alcohol & tobacco (5.0 percent), and processed food, alcohol & tobacco (4.1 percent).
On the countries basis, CPI increase was as follows: Lithuania (15.6 percent), Estonia (14.8 percent), Czechia (11.9 percent), and the Netherlands (11.7 percent). The lowest annual rates were registered in Malta (4.5 percent), France (5.1 percent) and Portugal (5.5 percent). Energy group, which increased by 44.4 percent on an annual basis was the main driver in the inflation according to Eurostat. In addition, as a result of the high commodity prices in international markets with the reflections of the tension in the Russia-Ukraine line, it is seen that food inflation was also significant.
The rise in the non-energy industrial goods group is an important indicator of the supply bottlenecks derived from the pandemic. However, we consider that the European Central Bank's (ECB) delay in policy tightening and the cumulative pressures on euro will continue in the face of regional inflation that has been at record levels.
In March preliminary data, inflation hit 7.5, all-time high, and finally, it was registered as 7.4 percent. Eurostat indicated that energy product increased by 12.2 percent, followed by tobacco (2.5 percent and energy, food, alcohol & tobacco (1.2 percent). On annual basis, energy increased by 44.4 percent. This was followed by unprocessed food (7.8 percent), tobacco (7.6 percent), food, alcohol & tobacco (5.0 percent), and processed food, alcohol & tobacco (4.1 percent).
On the countries basis, CPI increase was as follows: Lithuania (15.6 percent), Estonia (14.8 percent), Czechia (11.9 percent), and the Netherlands (11.7 percent). The lowest annual rates were registered in Malta (4.5 percent), France (5.1 percent) and Portugal (5.5 percent). Energy group, which increased by 44.4 percent on an annual basis was the main driver in the inflation according to Eurostat. In addition, as a result of the high commodity prices in international markets with the reflections of the tension in the Russia-Ukraine line, it is seen that food inflation was also significant.
The rise in the non-energy industrial goods group is an important indicator of the supply bottlenecks derived from the pandemic. However, we consider that the European Central Bank's (ECB) delay in policy tightening and the cumulative pressures on euro will continue in the face of regional inflation that has been at record levels.
