Skyrocketing inflation (and not for energy): clouds on the horizon for the EU

Inflation and energy

As for the data, those on the gross domestic product (GDP) data for the fourth quarter indicate that the eurozone narrowly avoided a technical recession. Looking at them more closely, however, an increasingly weaker consumer demand emerges growth penalized by domestic demand. Further signs of a weakening consumer demand come from data on retail sales in Germany, which bearish trend it continued in January. Together with the collapse in the M1 money supply and the tightening of lending standards, these data suggest that monetary tightening is having the desired effect.

An ECB open to the future

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