Inflation still high, that’s why the ECB will raise rates again: what will happen in May
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Inflation down, but far from the ECB’s 2% target
In March, average inflation in the euro area fell to 6.9% from 8.6% in January, but remains far from the 2% medium-term target set by the European central bank. And in some countries, the price index is still higher than the eurozone average, including Italy (here the latest Istat data), where last month it registered 7.6% on an annual basis, from 9.1 % of the previous month (-0.4%%). The slowdown, in our country as in the rest of the euro area, is mainly linked to the drop in energy prices, while the rise in food prices (the shopping cart) and recreational and cultural services continues. The problem is that so-called core inflation, ie with the exclusion of energy goods and fresh food remains stable at +6.3% in Italy, while it rose for the fourth consecutive month in the euro area, reaching a peak of 5.7% in March from 5.6% in February. In April 2022, core inflation stood at 3.5%. this record value worries President Christine Lagarde, because it means that the increase in prices has transferred to other sectors of the economy and could therefore be more difficult to defeat (economists speak of sticky inflation or sticky inflation).
21 Apr 2023
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