Macro Insights: European CPI reaccelerates, when economists expected a slowdown

E.U. service inflation re-accelerated in February. Historically, Europe tends to lag the U.S by 5-6 months.

James Van Straten
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James Van Straten
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Quick Take

  • Consumer price inflation came in hot for the E.U. and accelerated in France and Spain.
  • Spanish CPI (Y/Y) Feb: 6.1% (est 5.8%; prev 5.9%)
  • France CPI YoY 6.2% (est. 6.1); MoM 0.9%(est.1%)
  • E.U. services inflation tends to lag U.S services inflation by around five months, adding to the ECB's hawkish stance.
  • As a result, E.U bonds are selling off and the 10-year yield is at its highest level since 2011.
Services CPI y/y: (Source: Bloomberg)
Services CPI y/y: (Source: Bloomberg)
Euro 10 year yield: (Source: Trading View)
Euro 10-year yield: (Source: TradingView)
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James Van Straten
James Van Straten
Former Lead Analyst CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century's paramount invention.

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