Slowing of the inflationary trend in the United States despite an increase in October, gloomy economic climate in the euro zone, acceleration of Indian inflation in October… What to remember from the news this week.
The US Consumer Price Index (CPI) for October accelerated slightly to 2.6% due to continued housing inflation. The latest data confirms the volatility we expect in inflation – particularly if the new Trump administration’s policies are implemented – but we believe the overall trend is downward for now.
In the Eurozone, preliminary inflation data for October also indicates a downward trend. While we believe the European Central Bank (ECB) may be particularly attentive to this data, it may continue its monetary easing and cut rates in December. These rate cuts, together with the increase in real income (adjusted for inflation), are expected to boost household consumption and demand in Europe.
We expect a heterogeneous economic recovery across countries, with domestic policies playing a key role. In the United States, a slight economic slowdown is likely. The overall economic environment is expected to remain favorable.
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