Eurozone inflation eased back to a rate of just 1.1% in February. As in the US, there is some indication of a modest pick-up in wage growth, and this has in the past been closely associated with the rate of inflation in the service sector.
The key issue is how robust such an increase in wage and service sector inflation proves to be and whether inflation will move back up towards its target of 'less than but close to 2%'. Investment...
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