- Prior +0.3%
- HICP +1.1% vs +1.1% y/y prelim
- Prior +0.4%
The HICP is the more important measure as that’s what the ECB targets. The final figure matches the preliminary estimate, so there’s nothing to see here.
France HICP Y/Y
The data hasn’t been much of importance for the market anyway as the focus remains on the US-Iran war and the disruption in the Strait of Hormuz which is keeping oil prices elevated.
The market is pricing in two rate hikes for the ECB by year-end. In my opinion, these expectations are overblown as that would just increase the pressure on stock markets, tighten financial conditions further and exacerbate the negative impact on the broader economy.
