The peaking of Eurozone inflation

Invesco
By December 6, 2022 11:59

The peaking of Eurozone inflation

Unusually, inflation in the Eurozone is well above that of the US. We believe that two important factors, dollar and European gas price strength, are already fading. Hence, we think Eurozone inflation may have peaked and expect it to fall below that of the US over the coming year or so. Before turning to the main topic of this document, it is worth examining the US employment report for November that provided a slight setback for markets. Despite weak ADP employment (+127k, reported a few days earlier), a big rise in layoffs (Challenger Job Cuts were up 417% yoy) and a falling ISM Employment index (48.4), non-farm payrolls increased by 263k (all data for November). Though there has been a slowdown in job gains (an average of 272k in the last three months versus 374k in the previous three), these are respectable gains.

Invesco
By December 6, 2022 11:59

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