Euro area: Stagflation risks and ECB path – Standard Chartered
Standard Chartered’s Christopher Graham notes Euro area GDP growth excluding Ireland has slowed steadily since Q4-2025 while inflation continues to rise, increasing stagflation risks though not yet meeting that definition.
Standard Chartered analyst Christopher Graham warns of rising stagflation risks in the Euro area, as GDP growth excluding Ireland has been falling steadily since Q4-2025 while inflation continues to climb. Notable factors contributing to these concerns are higher energy prices and the delayed impact of the European Central Bank's (ECB's) tightening monetary policy.
Graham anticipates a 25 basis point rate increase in December, with inflation expected to start declining early next year. According to Eurostat data released this morning, euro area headline inflation rose to 4.0% year-over-year in October, surpassing the forecast of 3.8%.
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Also reported by 1 other outlet
- Euro area: Core inflation risks rising – Commerzbank fxstreet.com
