Euro Area Inflation Indirect Effects From Energy Shock Yet to Materialize: SocGen
Societe Generale economists note that the euro area has not yet seen indirect inflation effects from the energy shock in food or goods prices.
Economists Sam Cartwright, Michel Martinez and Jorge Garayo of Societe Generale have observed that the euro area's inflation figures have not yet reflected the indirect effects of the energy shock in food or goods prices.
The assessment suggests that further inflationary pressures may emerge as the transmission of higher energy costs works its way through supply chains. The note implies that headline inflation could face renewed upside risks in the coming months.
Source: FXStreet Forex News