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Eurozone core inflation is running below consensus estimates, leading analysts to conclude there is no immediate need for further ECB rate hikes. Technical factors, such as shifting inflation carry dynamics, are expected to influence the Eurozone inflation-linked bond market throughout July.

Key Takeaways

• 1.Eurozone core inflation is showing signs of weakness, with current levels estimated around 2.37% YoY in June.
• 2.Technical factors, including the end of positive inflation carry and index-extension, are expected to influence Eurozone inflation-linked bonds in July.
• 3.The firm sees no immediate need for an ECB rate increase, as inflation forecasts stand significantly below the ECB's base case.

Table of Contents

• Inflation: low core HICP, technical factors ahead
• Recent publications
• Upcoming data highlights
• EUR Rates Dashboard
• USD Rates Dashboard
• Interest Rates Research advanced tools

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