Updated
Updated · Bloomberg · Jul 24
Euro Zone GDP Rebounds 0.2% as July Inflation Accelerates to 2.9%
Updated
Updated · Bloomberg · Jul 24

Euro Zone GDP Rebounds 0.2% as July Inflation Accelerates to 2.9%

2 articles · Updated · Bloomberg · Jul 24

Summary

  • Economists surveyed before next week’s releases expect euro-zone output to return to growth, with GDP rising 0.2% in the second quarter after a prior setback.
  • July consumer-price growth is seen quickening to 2.9%, giving European Central Bank officials a firmer inflation backdrop as they weigh whether to raise rates again in September.
  • That combination of resilient activity and faster price gains forms the latest data batch heading into the ECB’s next policy decision.

Insights

Will a sudden July inflation spike force the ECB to risk a severe recession with a surprise September rate hike?
Are European central bankers blindly walking into a stagflation trap by treating supply-driven energy shocks with demand-crushing interest rate hikes?