{"id":592978,"date":"2026-09-07T14:44:12","date_gmt":"2026-09-07T14:44:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/592978\/"},"modified":"2026-09-07T14:44:12","modified_gmt":"2026-09-07T14:44:12","slug":"euro-area-inflation-overshoot-extends-ecb-hiking-path-societe-generale","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/592978\/","title":{"rendered":"Euro area: Inflation overshoot extends ECB hiking path \u2013 Societe Generale"},"content":{"rendered":"

Societe Generale economists Anatoli Annenkov, Michel Martinez and colleagues expect Euro area inflation to stay above target beyond 2027, with headline inflation projected to peak near 3.7-3.8% and core around 2.7-2.8%. They see the ECB hiking rates<\/a> this week<\/a> and again in December, as resilient activity and energy-related pressures delay a return to price stability.<\/p>\n

ECB seen extending restrictive stance<\/p>\n

“The August flash euro area inflation was the most important release, rising 0.4pp to 3.3% yoy, its strongest reading since late 2023.”<\/p>\n

“We thus expect headline inflation to peak at around 3.7-3.8% yoy in early 2027, as indirect effects from the energy shock begin to feed through to consumer prices, while core inflation could peak at around 2.7-2.8% in mid-2027.”<\/p>\n

“Against the background of stronger upward pressures on inflation, now also stemming from resilient economic activity, strong global AI demand and transport and food-related supply concerns due to heatwaves, war and the upcoming super-El Ni\u00f1o, we see inflation staying above target for longer, not returning to price stability until beyond 2027.”<\/p>\n

“This argues for further ECB rate hikes, and we have now added a December hike to the two hikes we already had for this year.”<\/p>\n

“Thursday\u2019s ECB meeting will likely see a rate hike being accompanied by relatively hawkish language, with no suggestions that the hiking cycle may be over.”<\/p>\n

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.<\/a>)<\/p>\n","protected":false},"excerpt":{"rendered":"Societe Generale economists Anatoli Annenkov, Michel Martinez and colleagues expect Euro area inflation to stay above target beyond…\n","protected":false},"author":2,"featured_media":592979,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-592978","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/592978","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=592978"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/592978\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/592979"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=592978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=592978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=592978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}