EMU HICP INFLATION

EMU inflation data for April:

Harmonised Index of Consumer Prices YoY: 7.0% versus 6.9% expected and 6.9% previously

Core Harmonised Index of Consumer PricesYoY: 5.6% versus 5.6% expected and 5.7% previously

Eurozone inflation is still high and above the ECB's target. This puts the ECB in a difficult position regarding the tightening cycle. Today's PMI data showed that most EU economies are currently in contraction (PMI less than 50)