Bankinter | Eurozone CPI was 2.1% year-on-year in August, while core CPI remained at 2.3% for the fourth consecutive month. The data was in line with expectations and reflects inflation virtually on target.
Analysis team’s view: Although it rose by one tenth of a percentage point compared to the previous month, the important thing is that inflation has been stable for six months at levels close to the ECB’s target (~2%), so we estimate that it will maintain its current key interest rate (2.00%/2.15%) at least until the end of the year. The ECB has already done much of the work, having cut rates by 200 basis points since May 2024. We only expect some fine-tuning if inflation falls below target or if there is a delay in fiscal stimulus.
