French CPI jumps 0.8% in Februari! Germany adds 0.4%

[prayerdon]

While today US PCE numbers were released for the month of Januari, in Europe they already have numbers for this month so Februari.

French CPI jumped a whopping 0.8% (!) this month, while Germany sees inflation going up 0.4% in Februari.

So just like the Fed, the ECB most likely will hold off on any rate cutting.

Tomorrow we will also get inflation numbers for Italy and the Eurozone as a whole but given the weight of France and Germany we already can tell it will be a hot number.

You can find all the numbers here: https://www.investing.com/economic-calendar/

 

[darksoul999]

@prayerdon French CPI is still 2.9 YoY so not as bad as the first number makes it sound

 

[prayerdon]

@darksoul999 In practice central banks pay more attention to recent months so if this trend of inflation ticking up again would continue this certainly could spell trouble.

 

[ineedjusus216]

@prayerdon Inflation is also typically concentrated in the first half of the year. A spike around now is pretty normal.

 

[iwonder777]

@ineedjusus216 Could you please shortly elaborate on that? Does it have something to do with new inventory/orders/other measures that business take at the beginning of the year?

 

[ineedjusus216]

@iwonder777 I’m not sure what the actual reason is tbh. I’m sure there is one, but I’ve never dug deeper

 

[lexismom]

@ineedjusus216 Annual raises and price adjustments typically happen in Q1..

 

[thefaithkids]

@prayerdon I do not follow the French economy very much. What do you think this means for your country or region economically or Europe in general?

 

[prayerdon]

@thefaithkids It mainly means the ECB will hold off cutting rates just like the Fed making bond yields go up.

 

[ritageorge]

@prayerdon I do not recognize the months of Januari or Februari

 

[anthonorace]

@ritageorge Nivôse and Pluviôse

 

[care563]

@ritageorge 'merica?

 

[paprikka]

@prayerdon First question - does it include energy costs.