Sandra Holdsworth, Head of Rates UK at Aegon Asset Management, comments on today’s surprise Eurozone inflation figures:
“Inflation data in the Eurozone for the 12 months to January 2022 was released this morning, and as has become usual, it surprised to the upside. The consensus Bloomberg forecast was for the headline inflation rate to fall from December’s high to 4.4% over the year. In fact, it rose to 5.1%, even higher than that recorded in December.
“This comes as unemployment reaches a record low in the Eurozone and the prospects for economic growth in 2022 look good. The European Central Bank meets tomorrow to discuss monetary policy, not much is expected, but data like this must raise the chances of a hawkish shift in tone.”